Page 24 - ARUBA TODAY

Monday 31 July 2017 BUSINESS
A24

Tesla delivers first lower-cost Model 3 cars

By DEE-ANN DURBIN range. But the price can
AP Auto Writer rapidly increase from there.
FREMONT, Calif. (AP) — Tes- Black is the only standard
la Inc. has finally made its color, for example; any
long-promised affordable other color is $1,000 extra.
electric car. But it could A fully loaded Model 3 with
take years to get it to all 310 miles of range and Tes-
the people who want to la’s full semi-autonomous
buy it. Tesla delivered the Autopilot system costs a
Model 3 small car to its first hefty $59,500. That could
30 customers — all em- be a stretch for some buy-
ployees — at a company ers, especially since there
party this weekend. CEO are limits on the $7,500
Elon Musk said Tesla will U.S. tax credit for electric
build the cars as fast as it cars. Once an automaker
can, but acknowledged sells 200,000 electric cars in
that supply issues and oth- the U.S., the credit phases
er complexities will make out. Tesla has already sold
it tough to reach his goal more than 126,000 vehicles
of making 500,000 cars since 2008, according to
next year. Fourteen-year- estimates by WardsAuto,
old Tesla has never made This image shows the Tesla Model 3 sedan. Tesla delivered the Model 3 small car to its first 30 cus- so not everyone who buys
more than 100,000 cars in tomers — all employees — at a company party this weekend. a Model 3 will be eligible.
a year. (Courtesy of Tesla Motors via AP) Potential customers also
“We’re going to go through thousands of customers seas deliveries start late many Tesla workers will be could lose faith if Tesla
at least six months of man- into the automaker’s fold, next year, and right-hand able to afford a Tesla. doesn’t meet its aggres-
ufacturing hell,” Musk told taking it from a niche luxury drive versions come in 2019. “It was never our goal to sive production schedule,
reporters Friday at Tesla’s brand to the mainstream. The Model 3 has long been make expensive cars. We or if the cars have quality
Fremont factory. “It’s going Musk said around 500,000 part of Palo Alto, Califor- wanted to make a car ev- problems that strain Tesla’s
to be quite a challenge to people worldwide have nia-based Tesla’s plans. In eryone could buy,” Musk small service network. The
build this car.” already put down a $1,000 2006, Musk said Tesla would said. “If you’re trying to compact Model 3 may
With its $35,000 starting deposit to reserve a Model eventually build “afford- make a difference in the not entice a global market
price — half the cost of 3. People ordering a car ably priced family cars” world, you also need to that’s increasingly shifting
Tesla’s previous models now likely won’t get it until after establishing itself with make cars people can af- to SUVs, including all-elec-
— and range of up to 310 late 2018. Cars will go first to high-end vehicles like the ford.” For the base price, tric SUVs from Audi and
miles (498 km), the Model employees and customers Model S, which starts at customers will get a Model others going on sale soon.
3 could bring hundreds of on the West Coast; over- $69,500. This is the first time 3 with 220 miles (322 km) of q

Bucking the trend:

Real estate brokerage Redfin has hot stock market debut

By ALEX VEIGA Wall Street. The major U.S. Smith, a principal at Re- details. Redfin also employs lion, compared with a loss
AP Business Writer stock indexes ended mostly naissance Capital, which agents to work with buy- of $24.3 million a year ear-
Shares in Redfin Corp. lower. Seattle-based Redfin manages IPO-focused ers and sellers in more than lier. Revenue jumped 44
soared in their stock market priced its initial public of- exchange-traded funds. 80 U.S. markets. The com- percent to $59.9 million.
debut on Friday as investors fering of about 9.2 million “And they’re gaining mar- pany says it charges most Like other real estate bro-
bet on the residential real shares at $15 each. That ket share, which is what’s home sellers a commission kerages, Redfin has had to
estate brokerage’s growth was above the maximum interested investors.” of 1 percent to 1.5 percent, contend with the impact
prospects despite a U.S. offering price of $14 per The company, which compared to up to 3 per- of a housing market that’s
housing market that’s been share that the company launched in 2002 and ad- cent charged by tradition- been hampered by a stub-
hampered by a worsening listed when it filed plans to opted the Redfin name in al brokerages. bornly low inventory of
shortage of properties for go public in June. 2006, provides listings of While the company’s rev- homes for sale.
sale. “They’re a discount real homes for sale online and enue has been rising, it has Despite solid demand in a
The stock climbed $6.70, estate broker with a tech- via a mobile app where booked consecutive an- relatively healthy economy
or 44.7 percent, to close nology edge, so they’re users can search for prop- nual losses going back to for houses, sales listings na-
at $21.70. The gain came a disruptor, and growing erties and find information 2014. For the three months tionwide have been steadi-
against a backdrop of faster than other brokers in on pricing trends, neigh- ended in March, Redfin’s ly declining for more than
mostly sluggish trading on the industry,” said Kathleen borhood data and other loss widened to $28.1 mil- two years.q