What to do? If you were offered the choice between paying $ 1000 and wait a year for your car or receive $ 4000 cash back and drive your new car tomorrow, what would you do? The answer 400.000 consumers gave, is that they are happy to wait for a year to drive their car. The Tesla model 3, the car that will be more affordable, is breaking sales records even though the production hasn't started. Obviously the heart of real car lovers who want to drive an electric car beats faster when thinking about themselves driving this Tesla 3, than when they think about themselves driving a Nissan Leaf. With 400.000 pre ordered cars the share price of Tesla was speeding to a new high almost every week until recently. I worry that at some time in the near future the share price will drop at the same rate as it went up. Why? Because Tesla is unable to make a profit on the expensive models. Will Tesla be able to make a profit on a much cheaper model? When will Tesla join the rotation you mentioned in your audio?

Eoin Treacy's view

Right now Tesla, more than any other car company, has a cool cache people are willing to pay and wait for. By contrast the Nissan Leaf or Chevrolet Volt don’t come close. The model 3 is the closest thing to the original Ford Mustang, but for the modern era, and the surge in orders to data is a reflection of that. Fulfilling the timeline for production is an altogether different story.

It’s worth highlighting that the share’s bounce from the January low has been spurred by the release of the Model-3 but the price has been rangebound since early 2014 when major expenditure on the company’s battery giga-factory was announced. That building project remains a substantial drag on the company but is due to be commissioned later this year; hence the 12-month delivery window for the new car.  To the best of my knowledge the anticipated scale of the battery factory is 500,000 vehicles so it will be interesting to see what the delivery dates will be when they get closer to that level.

The share has paused above $240 and will need to hold the region of the trend mean, currently near on any more significant pullback to confirm more than temporary resistance in the region of the previous peaks. With such a steady flow of good news there is not a great deal of evidence that Tesla will join any reorientatino of risk appetite likely to take place in the short term.