Orders for lower-priced Tesla hit 198,000

Orders for lower-priced Tesla hit 198,000

HAWTHORNE, Calif. (AP) — Demand for Tesla Motors’ new lower-priced electric car surprised even the company’s CEO Friday as 198,000 people plunked down $1,000 deposits to reserve their vehicles.

“Definitely going to need to rethink production planning,” a surprised CEO Elon Musk said on his Twitter feed.

Musk unveiled the car Thursday night at a design studio near Los Angeles. It starts at $35,000 and has a range of 215 miles per charge, which is far more than most people drive each day.

The orders came from across the globe even though the car isn’t scheduled for sale until late in 2017. But they could jeopardize a $7,500 U.S. electric car tax credit that many buyers are counting on to reduce the price. The tax credits gradually phase out after a company hits 200,000 in U.S. sales.

A Tesla spokeswoman wouldn’t say how many of the 198,000 orders came from the U.S.