Tesla Model 3 Pre-Orders Point To $10bn Sales

Electric car firm Tesla has already raked in $300m in deposits after demand for its hotly anticipated Model 3 car was higher than expected.

Almost 300,000 customers have placed a $1,000 down payment for Tesla's low-cost five-seater.

The car will be released next year, with deliveries expected to take place in autumn or winter.

The basic model will start at $35,000 (£24,500) and has a minimum range of 215 miles (346km) on a single charge.

Tesla boss Elon Musk tweeted that 276,000 pre-orders have been received, which could net his firm up to $10bn on completion.

Demand is so high that it may be hard for Tesla to keep up with production - Mr Musk said the company is "definitely going to need to rethink production planning".

Tesla hopes that around 500,000 vehicles a year can be manufactured once production is at full capacity.

Last year Tesla delivered just over 50,000 vehicles, most of which were its Model S saloon car.

The Model S has overtaken the Nissan Leaf to become the world's bestselling all-electric vehicle.

Tesla continues to lose money as a result of its extensive research and development spending, however.

In 2015 it lost $900m, leaving it with cash reserves of around $1.2bn.