Tesla shares rose Friday while other automakers fell in the wake of disappointing new-vehicle sales in March, leading Barclays analyst Brian Johnson to write that the tide was turning away from gasoline-burning engines to autos powered by electricity: "We've seen more than our fair share of headlines on how the Model 3 is a game changer, with the EV revolution imminent. Adios gas-powered cars." Big launch: "The future of electric cars is looking bright", says Elon Musk. Credit:David Paul Morris The $US35,000 ($45,579) Model 3 will have a minimum 346 kilometres range, and Musk said he's "fairly confident" deliveries will begin in 2017. Tesla received more than 115,000 reservations in 24 hours, Musk said on stage at the company's Hawthorne, California, design studio. On Friday, Musk said in a tweet that orders had reached 180,000 after 24 hours, with an estimated value of about $US7.5 billion ($9.8 billion). Then about an hour later, he posted that the tally had risen to 198,000. "We have an amazing product. I think you'll be blown away," Musk, 44, said Thursday. "You will not be able to buy a better car for $US35,000, or even close. It's a really good car, even with no options." Changing the game

The Model 3 is the linchpin of Tesla's plan to reach beyond the most affluent buyers and make electric vehicles a significant part of the auto market. Much of the car's platform is new, including the battery architecture and motor technology. Many of the executives who worked on the Model 3, including Chief Technology Officer JB Straubel and chief designer Franz von Holzhausen, have been part of the company's leadership team for years. "Tesla has changed the game again," Andrea James, an analyst with Dougherty & Co., said in a note Friday in which she raised her price target to $US500. "In one day, Tesla generated at least 150,000+ reservations, representing an order book of $US6 billion in revenue, and generating $US150 million in zero-cost capital from the $US1000 customer deposits." "Handover party for first 30 customer Model 3's on the 28th! Production grows exponentially, so Aug should be 100 cars and Sept above 1500." Last year, Musk suggested that if Tesla continued to grow by 50 per cent a year for 10 years, generating a 10 per cent profit margin and garnering a price-to-earnings ratio of 20, it would be valued at about the same $US700 billion Apple was worth then. It's since slid to more like $US600 billion. The number of Model 3 reservations exceeded analysts' estimates and is more than the roughly 107,000 vehicles Tesla has sold to date. At $US1000 each, the deposits would infuse the company's coffers with about $US200 million. While the reservations are refundable, the outpouring suggests there will be plenty of demand for the company to work through once production gets under way.

The challenge ahead of Tesla is going to be making all of these cars quickly enough and well enough. The company aims to make 500,000 vehicles a year by 2020 and is counting on its battery factory under construction near Reno, Nevada, to further drive down battery costs. Tesla's Fremont, California, factory can accommodate assembly of 500,000 autos, said the company, which has yet to master manufacturing in high volumes. Tesla's "master plan," laid out by Musk in August 2006, was to enter the auto industry at higher-end prices, then drive down market as fast as possible with increasingly higher volumes. The Model 3 is the Palo Alto, California-based company's fourth car, after the Roadster, the Model S sedan and the Model X sport utility vehicle. The Model X was unveiled in February 2012, with delays pushing back the initial deliveries to customers until September 2015. Hardware for Tesla's Autopilot features will be standard and the four-door sedan will seat five adults. Design features include one large, continuous piece of glass for the rear roof area to enhance visibility. Tesla said it plans to double the number of its Supercharger stations and its store count by the end of 2017. Customers in new markets including Brazil, India and Musk's native South Africa were among consumers able to place orders online Thursday.

US Tesla customers are eager to get their cars before the $US7500 federal tax credit for electric vehicles is phased out. While the Model 3's base price still makes it a luxury model, it is not nearly the financial stretch for consumers as the $US75,000-and-up Model S. "I've been waiting to buy an electric car for 10 years," Mark Dilsizian, a doctoral student at New Jersey's Rutgers University who also runs a software startup, said on Thursday. "It's safer, it's greener, it's better performing, it's better designed." Bloomberg