Tesla Model 3 cancellations exceed 63,000 units but Musk thinks it is inconsequential

Article by Christian A., on August 7, 2017

Last July 28, Elon Musk held a special event for the first 30 customers of the Tesla Model 3. The Model 3 is the company’s first mass-produced vehicle and is also their most affordable model. The reason why only 30 units were delivered that day is because production is currently moving slow for the Californian automaker. However, they did say that production will hike up exponentially. But even after saying that, car owners who order one today won’t get their Model 3 until 12 to 18 months after.

Here is the thing, not everybody is that patient or can wait that long for a car to be delivered to their garage, so a lot of these people cancelled their pre-orders. As of now, there have been around 63,000 cancellations that were made by customers, according to Elon Musk as he revealed this during their quarterly earning call. All in all, reservations for the Tesla Model 3 have gone down from 518,000 to 455,000.

Musk further added that the cancellations were recorded in the span of over a year. Having said that, Tesla does not seem to be very much affected by the cancellations. In fact, the company feels more relieved probably because there is less pressure put on them. Musk even compared themselves to a restaurant, saying that if people queue up for a hamburger when there is already an hour and a half wait, there’s really no reason to attract more customers.

This is why the company is not putting any effort to even convince the customers to place reservations or to change their mind after cancelling. So far, the company cannot accommodate the amount of orders that they have because production had just started, and is still moving quite slow.

Elon Musk described the production process to be a manufacturing hell. This is because they probably did not expect to get that many reservations, and he admitted that the company “signed up for it”. However, he does say that this is the best he has ever felt about Tesla.

A few weeks ago, the company did say that they plan to increase production as time goes by, and that by the end of the year, they should be able to produce 5,000 units of the Tesla Model 3 weekly, followed by 10,000 units weekly in the beginning of 2018. Let us just hope that everything turns out well for the company.

Moreover, the company’s long-term plans include building an all-wheel drive variant during the first quarter of the year, and in the first six months of 2018, they will begin deliveries outside the country. For right-hand drive models, you will have to wait until 2019.

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