Tesla Model 3 orders soar following launch event

Things are looking as bright as a new penny for Tesla these days. Reviewers are raving about Model 3, the latest financial results were better than expected, and the stock is back on an upward trend. In a conference call with stock analysts, Elon Musk said that this was “maybe the best I’ve ever felt about Tesla.”

Naysayers have been speculating that many of the over 500,000 orders for Model 3 will be cancelled, but the fact is that they are still pouring in. “Since the handover event last week, we are averaging over 1,800 net Model 3 reservations per day,” said Tesla in its recent shareholders’ letter. “So to be more accurate, there have been 518,000 gross reservations for 3, and we have 455,000 net reservations,” Musk added during the earnings call. “But those cancellations occurred over the course of more than a year.”

The ordering process is proceeding as planned: “We opened the Model 3 configurator to the thousands of our employees with reservations so they could begin ordering their vehicles. Soon, non-employee customers will begin receiving invitations to order their cars in small groups based on when they placed their reservations, with existing Tesla owners receiving first priority. Deliveries to non-employees will begin in Q4.”

The first shipments will be the higher-priced Long Range Battery models, which start at $44,000. The Standard model should begin shipping in the US in November. Non-US markets will begin receiving Model 3 in “late 2018,” and right-hand-drive markets will have to wait until 2019.

Elon isn’t worried about reaching the company’s ludicrously ambitious production targets. “What people should absolutely have zero concern about – zero – is that Tesla will achieve a 10,000-unit production week by the end of next year,” he told the analysts.

Is the advent of the lower-priced Model 3 hurting sales of Models S and X? Not so far. While conceding that it’s “too early to draw strong conclusions,” Tesla said that the “weekly net order rate for these vehicles was about 15% higher than the Q2 average weekly order rate.”

 

 

Source: Electrek, TechCrunch
Images: Steve Jurvetson (CC BY 2.0)

  • Ed

    As Elon tells us, Model 3 production will be limited by the most unlucky supplier. With so many new components, ramp-up will always be a challenge…but I suspect Tesla has made quite and investment in personnel to monitor and support the supply base. Here’s hoping for the best!

  • B E V

    Interesting. That’s very good for Tesla. I had been concerned that they had tapped out the enthusiast market with all the reservations.

    I’m still concerned that it could be a rough transition from pre-orders to regular sales. You can’t live in pre-order world forever, especially with an “economy” model. At some point you have to have cars ready to ship immediately, and cars in store ready to be driven off the lot same day.

    In late 2018 when the last reservation holders have been satisfied (which means they have to stop taking reservations at some point this year) The direct sales may not initially match the volume of the pre-orders. That could be a hard hit, as production volume would have to slow down abruptly to match the market.

    My other concern, and don’t down play this, is that while you can pre-order a Model 3 today, you cannot BUY one today. A huge difference. And you won’t be able to just buy one for at least 18 months, maybe 2 years…hard to know.

    In that time here’s a short list of electric cars people can or will be able to buy: the NEW Nissan Leaf, Chevy Bolt, Hyundai Ionic, Honda Clarity, the NEW BMW i3.

    And that’s the SHORT list, off the top of my head, of electrics that are either out now, or will be available to be purchased before the Model 3. The thousands of people who are NOT enthusiasts (think of the difference between you with your iPhone, and the other 85% of the market who have android, and don’t’ know the difference and don’t care) but who are more and more coming to see electric cars as not just a viable alternative, but a better car than ICE cars, will buy these. And some, like Nissan, BMW, and Hyundai, plan to market their cars heavily.

    Regular car shoppers will buy what is available now. The marketing will be in place for these cars. When the Model 3 CAN be purchased by regular folks, it will not have the market to itself, it might not even be noticed by a majority of BEV purchasers. This is something I have not seen Tesla address, and I don’t see Tesla enthusiasts being particularly friendly to this reality. Tesla needs to advertise the snot out of the Model 3 as it approaches the completion of pre-order fulfillment to ensure it breaks into this market.

    I’m not prophet, could be wrong, but this looks like an obvious pitfall, and I don’t see Elon taking any action to address this. Maybe he thinks he doesn’t need to, and Tesla will remain a niche luxury brand, and he’s ok with that since it still fulfills his vision of kicking off the BEV revolution? I don’t know.

    • DeeAgeaux

      You can buy all those POS cars today on the lot because supply exceeds demand.

      You will not be able to buy an inventory Model 3 for 2 years because demand far exceeds supply. And in short order Model 3 supply will exceed all those others COMBINED.

    • Kelly Hart

      Yes you can buy those other cars, or will be able to by the time you can buy a TM3, but you will not be able to fast charge them when you try and travel in them.

  • Vincent Wolf

    Tesla 1, Detroit 0. Soon Tesla 10, Detroit who?

  • andersemanuel

    Happy for Tesla but that interior dash picture.. makes me sad that they failed again with the interior.

  • hairy

    any chance there is same battery pack in both versions? just software limited in 35k m3?