If you hesitated to order a Tesla Model 3 and really want one now, you might be waiting for a few years.
Tesla CEO Elon Musk has admitted demand for the Model 3 is much higher than anticipated, and recently tweeted that he and the company will have to rethink production in order to meet demand. Realistically, not every single person who paid a $1,000 deposit to reserve a Model 3 will follow through and purchase it, but even being conservative, there will be some people who will have to wait until 2019 at the earliest to get their all-electric sedan.
Pre-orders are now up to at least 276,000 units and analysts believe some customers making early reservations may not take delivery until 2019 or 2020, especially since priority is given to current Tesla owners.
Tesla faced issues getting production going for the Model X crossover, which was delayed numerous times. Musk is confident that the Model 3 will be on track and deliveries will begin late next year. The big question is how quickly Tesla can ramp up production in order to satisfy demand.
The company’s factory was once capable of producing 500,000 units per year, but it will take a sizable investment and time for Tesla to get to that point. The Gigafactory will have to be able to provide all the batteries necessary for half-a-million vehicles annually. Currently, Tesla produces around 50,000 units per year, which means a tenfold increase by 2020.
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