Tesla Motors gave an early preview of its Model 3 sedan at an Apple-like launch event near Los Angeles on April 1, Thursday, announcing that over 130,000 people had already ordered the electric vehicle (EV) that is set to start production runs in 2017. Tesla CEO Elon Musk introduced a Model 3 prototype in Hawthorne, California with hundreds of Tesla car owners and media members at the unveiling event. The SpaceX founder announced that the company's new electric car will have a price tag starting at $35,000 and a range of 215 miles (346 kilometers).

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Musk asked the excited audience in the Tesla design center if they wanted to see the car. Then in the spirit of April Fools' Day the company's chief executive joked that the car was unavailable that night, according to CNBC.   

Three four-door Model 3 cars were then driven onto the stage. The aerodynamic autos lacked a grill and featured a panoramic roof made of one sheet of glass that covers the length of the vehicle.  

During the event the number of Model 3 pre-orders jumped 16 percent to 137,600 units. Online pre-orders were taken starting at 10:30 p.m. ET while long lines and camp outs were reported as global Tesla dealerships started accepting preorders with a $1,000 deposit earlier that day.

Tesla will face a lot of competition from other EVs. They include Chevrolet Bolt EV, Nissan Leaf, and BMW i3; and plug-in hybrids from Toyota, Chrysler, Kia, and Mitsubishi.

Tesla's stock prices spiked around 7 percent in pre-market trading on April 1, Friday. The company's shares have risen in the past few days leading up to the Model 3 launch by the Silicon Valley company.

The electric car company hopes to sell half a million EVs per year by 2020. Tesla's Gigafactory in Nevada is almost ready to start operating. It will produce e-car batteries to help fill orders for the Model 3 and reportedly reduce the battery pack's cost by 30 percent.

While the Model 3 event has driven hype for the new all-electric car, the American automaker is taking a big risk by scheduling it before the vehicle's scheduled rollout in Q4 2017. The company could be trying to get a head start over other rival electric cars, or increasing cash flow to finish developing and launching its next product following the Model S sedan and Model X SUV crossover, according to The Daily Beast.