The Tesla Model 3 event last week had the internet buzzing about the realistic future of bringing electric cars to the masses, and on a more affordable budget at that. But, it looks like Elon Musk may have bitten off more than he can chew with the number of pre-orders rising steadily and reaching 325,000 in just one week. Reserving your Tesla Model 3 costs only $1,000 and some customers have even ordered 2 – the maximum number each customer is allowed to reserve. But are the dreams of optimistic consumers too far off to be real? With this many orders and the cost required to produce each vehicle, it’s very possible that people will be waiting for a while before taking a ride in their new Model 3.
In fact, that’s more than the total number of Tesla vehicles sold worldwide since the introduction of the Tesla Roadster in 2008.
When the Model 3 was unveiled, Musk stated that the cars were expected to hit the road in late 2017. Of course, that was before hundreds of thousands of people logged onto the Internet and reserved their vehicle online. While it’s great news for Tesla that there is so much interest in this model, what might not be so great is breaking the promise for the delivery of the vehicles. Though Musk talked about the ability to produce 500,000 vehicles annually, this has yet to be achieved. In fact, that’s more than the total number of Tesla vehicles sold worldwide since the introduction of the Tesla Roadster in 2008.
Of course, it takes time to develop brand awareness and Tesla is no exception. In 2015, the Model S was named the world’s best selling plug-in electric vehicle. But, up until last week, the futuristic car was thought to be out of the price range of most consumers until Musk revealed the $35,000 price tag for the base model. It goes without saying that there will be options to upgrade the experience and like Elon said, “Of course there will be versions of the Model 3 that go much faster.” The base model comes standard with the ability to accelerate from 0 to 60mph in less than 6 seconds and a range with an EPA rating of 215 miles per charge. And to the satisfaction of many consumers, Musk stated, “I want to emphasize, these are minimum numbers; we hope to exceed them.”
Customers are hoping that Tesla can deliver, but from a money standpoint, there are a lot of things to consider before this becomes a reality. It’s pretty costly to operate Tesla and even with the amount of money raised from pre-orders and the hypothetical purchases, the company would blow through the funding in a mere two months. Loans will be necessary to carry out the production of the Model 3, which might not be arriving for several years.