Tesla says 12,200 Model 3 orders canceled

Tesla Motors Inc. now holds about 373,000 reservations for the Model 3 electric car due late next year following customer cancellations of about 8,000 cars and 4,200 duplicates canceled by the company.

The numbers were reported as part of a Tesla filing to raise $ 1.4 billion in a share offering to pay for the accelerated launch of the car.

Company executives had previously indicated reservations totaling about 400,000, without giving an absolute number.

The reservations have been made without a promotional push since the March 31 unveiling of the car. Meanwhile, Tesla said, its existing models are still very much for sale.

“If we wanted to, we believe that we could further increase the number of Model 3 reservations with minimal effort but believe it is better to guide customers to purchase products currently in production,” Tesla said in the filing.

The $ 1.4 billion sale of shares falls within most Wall Street expectations after Tesla CEO Elon Musk indicated earlier this month that the company would need to raise “some combination of equity and debt and make sure the company has a good buffer of cash.”

The company says it plans to make 500,000 Model 3 a year by 2018.

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