Tesla CEO Says Almost 400,000 Orders Received for Model 3

Electric car manufacturer Tesla Motors has received almost 400,000 orders for its latest car, the Model 3 sedan, its CEO said on Thursday.

"We are now almost at 400,000 orders for the Model 3," Elon Musk told a conference held in the Norwegian capital. He added that the interest in the model had "surprised even us".

On April 7, the company said it had received over 325,000 reservations for the Model 3. This mark was hit just one week after the car, which will not be available until late 2017, was unveiled by Tesla Motorsfounder Elon Musk in Los Angeles.

"This Interest has spread completely organically," Tesla had said on its blog. "Unlike other major product launches, we haven't advertised or paid for any endorsements."

Consumers interested in the car must pay a deposit of $1,000 (roughly Rs. 66,670). Tesla has viewed the Model 3, which starts at a base price of $35,000 (roughly Rs. 23 lakhs), as key means to transitioning the auto market to zero-emissions.

But it is also Tesla's key to transitioning from a niche luxury automaker to a real industry player selling a large volume of cars.

The huge number of orders will necessitate a big ramp-up in Tesla's manufacturing capacity. First started in 2003, Tesla built just 50,000 cars in 2015, but has set a target of 500,000 a year by 2020.