The first Tesla Model 3 has rolled off the production line with Tesla CEO Elon Musk there to take ownership. This is a significant step in the company’s long-term development because at $35,000 this is classed as a “mass-market car”. In effect the company is making the jump from luxury electric car manufacture to a mass-market producer. So, what does the future hold for Tesla?
Tesla Model 3 in demand
When Tesla unveiled plans for the Tesla Model 3 some months ago the company invited those interested to put down a $1000 deposit on their vehicle. Demand was astounding to say the least with Tesla taking around $500 million in deposits, far more than the company was ever expecting. While some of these deposits may have been cancelled there is no doubt that demand for this vehicle already runs into the hundreds of thousands.
Can Tesla keep up with demand?
We are already looking at hundreds of thousands of reserved vehicles yet the company plans to hand over keys to just 30 at its official launch on 28 July. Interestingly, the first batch of vehicles will be confined to those employed by the company (with many showing significant interest) in what could turn out to be an outstanding commercial decision. Historically, the launch of new vehicles by Tesla has been “rushed” and very often issues emerge further down the line which need correcting. Addressing these issues is no problem but the negative publicity is. So, by confining the first batch of vehicles to company employees the idea is that any glitches can be ironed out before the vehicle is rolled out to the mass market.
Ever one to overplay his hand, Elon Musk has been extremely detailed in his plans for the immediate future. A disappointing 100 vehicles will roll off the production line in August, 1500 in the month of September and this will increase to 20,000 cars a month by December. This is a very ambitious scaling up of manufacturing capabilities and one which investors will no doubt be monitoring very carefully. Can the company keep pace with these ambitious plans?
Ordering today
It has been confirmed that those looking to order their Tesla Model 3 today would receive it towards the middle of next year when production will be in full flow. We wait with great anticipation for initial feedback from members of the public presumably after any glitches have been corrected. This type of information will be nonbiased, extremely detailed and no doubt the Internet will be abuzz with any feedback, problems and success stories.
In years gone by Tesla has ramped up expectations to levels which were in many cases impossible to reach. Talk of the Tesla Model 3 has been ongoing for more than two years now and finally the first vehicle has rolled off the production line. While all of the previous models had their own extremely positive publicity it is the Tesla Model 3 which will dictate the immediate future of Tesla. If this is a success then the company will be selling more cars than many traditional manufacturers and changing an industry which has been developing but yet to smash the mass market.
We await developments with anticipation!