Tesla delivers first thirty Model 3s, but can it keep up?
The first thirty production models of the new Tesla Model 3 will be delivered on Friday 28th, most of them to Tesla employees. With already 400.000 Model 3 cars pre-ordered, the big challenge for Tesla will be to keep up with production in its Fremont factory.
Elon Musk, CEO and founder of Tesla, is happy to report that productions deadlines have been met and that the first thirty costumers receive their new Model 3. A point that should help to reassure investors betting a lot on the Californian manufacturer. With this new small saloon, Tesla aims at a total production of 500.000 cars for 2018.
The new Model 3 starts at $ 35.000 (30.000 euro) and represents the new entry point in the Tesla range. Above it are the Model S and X costing between 82.500 and 162.500 euro in Belgium depending on the battery pack and options.
The new American small saloon plays in a new segment against the Audi A4, BMW 3 Series and Mercedes C-Class which won’t be available in an electric version right away. During its launch, Tesla received 400.000 pre-orders for the Model 3 from buyers who needed to make a $ 1.000 advance payment.
Keeping up the pace
In 2016, Tesla sold 84.000 cars. A drop in the ocean compared to Volkswagen or Toyota which sell 10 million cars. Musk hoped to sell 50.000 cars during the first three months of 2017, but only managed to ship 47.100 units, due to a shortage of battery supplies. With an overflowing order book, Tesla needs to keep up the pace to succeed.
But Musk already downgraded his objectives. Before, he talked about 4.000 Model 3s in July, 8.000 in August, and 16.000 in September. These numbers have been changed to 100 in August, 1.500 in September and 20.000 in December.
With the new Model 3 as the volume selling car, Tesla hopes to deliver 500.000 cars in 2018 before reaching a million in 2020. It would mean selling 400.000 Model 3s next year or 33.333 each month. Issues in battery supplying should be a thing of the past thanks to the new Gigafactory in Nevada that should be operational by the end of the year.
Traditional manufactures as also upping their games to catch up with the Californian company and with the current booming SUV segment, Musk already has plan for a smaller SUV called Model Y. It should be presented next year and launched in 2019.