24% of Tesla Model 3 Orders Cancelled, Cancellations Outnumber New Orders

Guest ROTFLMAO! by David Middleton

From the purveyors of Fake News…

24% of Tesla Model 3 orders have been canceled, analyst says

by Jordan Valinsky @CNNMoney
July 19, 2018

Tesla is finally making enough Model 3s — but an analyst says many customers are growing too impatient to wait any longer for them.

Cancellations for Model 3 orders have picked up in recent weeks. Refunds now outpace deposits for Tesla’s new mass-market electric car, according to Needham & Co. analyst Rajvindra Gill. Tesla disputes that.

In an analyst note delivered to clients Thursday, Gill cited extended wait times for the car, the expiration of a $7,500 tax credit, and the fact that Tesla has not yet made the $35,000 base model of the car available for purchase yet.

About one in every four Model 3 orders is canceled, Gill said, double the rate from a year ago. Customers have to put down a refundable $1,000 deposit to reserve a Model 3, then pay another $2,500 to choose their specific version. They pay the rest when the car is delivered.

The wait time for a Model 3 is about 4 months to a year, and base model customers could wait until 2020, Gill said.

A Tesla spokesperson denied that Model 3 cancellations exceed new orders.

[…]

CNN Money

Who do you believe?  Stark Industries Tesla, CNN or the Wall Street analyst?

Tesla has finally topped 5,000 Model 3 units per month, delivering 6,250 and 6,062 in May and June respectively.  Tesla’s monthly Model 3 output is now up to about 55 hours worth of Ford F-Series production.

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Johann Wundersamer
July 23, 2018 5:13 pm
Holly Birtwistle
July 23, 2018 5:43 pm

Perhaps Musk will sell the money losers Tesla, and Solar City, to ‘green ‘ companies, and focus his attention on Spacex, his only company that seems to have a future, and can pay its own way without tax-payer subsidies.

Scott Bennett
Reply to  Holly Birtwistle
July 23, 2018 11:32 pm

Tesla Motors Inc., SolarCity Corp. and Space Exploration Technologies Corp., known as SpaceX, together have benefited from an estimated $4.9 billion in government support.

Tesla and SolarCity continue to report net losses, despite the stocks of both companies soaring on their potential.

SpaceX – a private company – does not publicly report financial performance!

But, public funding is still public money:

5.5 billion in government contracts from NASA and U.S. Air Force.

And $20 million in economic development subsidies from Texas to construct a launch facility.

The public-private financing model underpinning his long-shot start-ups is a common theme running through his emerging empire.

Reply to  Scott Bennett
July 24, 2018 8:07 am

I give SpaceX a plus 100. The other two, minus 100s. I give that from their performances.

John Hardy
July 23, 2018 10:30 pm

There is billions shorted on Tesla, hence a lot of financial firepower devoted to talking the stock down. I’d be very surprised if they run out of purchasers:

http://static2.uk.businessinsider.com/image/5b18238c7708e946db0f9098-1200/model%203%20share.jpeg

Grant
July 23, 2018 11:14 pm

I think Musk underestimated the needed expertise and experience to build cars at a profit. It’s a brutal market and they might easily not survive the competition in EVs from Chevrolet, Ford, BMW, Toyota, Nissan etc. All who have vastly more experience and resources.

Hocus Locus
July 24, 2018 2:08 am

Now IF ONLY we could keep those cancelling customers MENTALLY OCCUPIED with something for a few months… so they fail to notice that as bankruptcy looms, the distressed price of these unsold vehicles is plummeting headlong towards the affordable sticker price Musk had promised… and we could snatch them up ourselves.

If any one of your social media contacts gripes that they have cancelled their Tesla order, send them a dozen links to new stories bashing Donald Trump (or in the UK, Theresa May). That should do the trick.

Roger Knights
July 24, 2018 3:42 am

To follow the near-daily Tesla soap opera, click here: https://seekingalpha.com/symbol/TSLA

FWIW, I think the company will manage to seem to turn a corner in a couple of months and stagger on for another six months or so, until the pent-up demand is mostly satisfied, and competition begins to really bite, and the tax credit is mostly gone, and other headwinds take their toll.

Oatley
July 24, 2018 4:03 am

Anyone can lend this guy money to buy one of his cars in a couple of years. I don’t mind at all. What I DO mind is taxpayer funded credits to buy.

Editor
July 25, 2018 4:24 am

In Ontario, there was recently a provincial election, won by Doug Ford, often labelled by opponents as “Ontario’s Trump”. As the old saying goes “elections have consequences”. Ontario’s electric vehicle rebate has been cancelled. With Ontario being Canada’s most populous province, that has to have at least a minor effect on Tesla.

MrPete
July 25, 2018 4:56 am

I just learned something VERY sobering about the Tesla Model 3. It has usability issues that cannot be fixed through a software change.

There are NO physical controls of any kind for many functions that need to be stored in muscle memory for the driver, and dead simple for casual passengers. Things like…
– Side mirror adjust
– Air vent adjustments
– Windshield wiper speed
– Glove box opening
– Etc

ALL of those and more are accessible only through the central touch screen menus, and possibly a smart phone app. Distracted driving, here we come, to say nothing of emergency response situations.

This is a car designed to be used by a computer, not a human. There’s a reason for physical controls, and it is not because nobody knows how to make computer touch screen menus.

https://www.gearbrain.com/tesla-model-3-interior-review-2544978610.html