Tesla (NASDAQ:TSLA) shares were pointing to a positive opening on Monday after Elon Musk tweeted over the weekend that a dual motor, all-wheel drive performance Model 3 will be coming, and after U.S. Treasury Secretary Steve Mnuchin said on Sunday that "We're putting the trade war on hold", referring to trade talks with China.
The first version is an all-wheel drive (AWD) version of the Model 3, which will feature a second motor on the rear wheels, adds $5,000 to the price, can reach 0-60MPH in 4.5 seconds, has a top speed of 140MPH and still retains the 310-mile range. That's the same as the performance Model S and faster than the 140 miles per hour top speed of the standard dual-motor Model 3.
Two new all wheel drive (AWD) versions of the Tesla Model 3 will go on sale next month.
The backlog kept growing and even though the company has delivered a few tens of thousands of Model 3 vehicles since the start of production last summer, they still had over 450,000 reservations with deposits at the end of last quarter. If one of the motors breaks down, the auto can operate off of the other one - a level of security usually reserved for aircraft.
Tesla Model 3 in pictures Mon, January 30, 2017 The Tesla Model 3, which is set to be released in 2018, in pictures. Musk said it will handle better than a BMW M3 and "beat anything else in its class on the track". That means that if one motor fails, he explained, the other will "ensure you make it to your destination & don't get stuck on side of road in potentially unsafe conditions".
During the fourth quarter of 2017, Tesla made 2,425 Model 3 vehicles.
Hollis Johnson/Business InsiderElon Musk said offering the $35,000 base model immediately would have damaged the company's financial health. Just last week, Reuters reported that Tesla plans to halt production for six days during the summer to upgrade its production line to reach its goal of making 5,000 cars per week. These numbers are designed for the needs of speed enthusiasts.
Tesla faces a variety of other issues, including a number of lawsuits, charges leveled by the National Labor Relations Board that it fired 1,000 workers to blunt a unionization drive in Fremont, and a series of investigations by federal regulators looking into a series of recent crashes.