Tesla's Concern Ahead of Model 3 Production
Tesla's Concern Ahead of Model 3 Production
  • By Lee Kyung-ho (lkh@koreaittimes.com)
  • 승인 2016.04.20 10:30
  • 댓글 0
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Tesla CEO Elon Musk gives a brief presentation about the Model 3 (Image: Tesla homepage capture)

Tesla has always said it is concerned about high demand of its vehicles while analysts and experts have different views, according to Business Insider.

The news report said Tesla's financial statement has been an issue in its every quarterly conference call during the last two years.

Whenever its CEO Elon Musk is asked about the demand of its vehicles, he has said the company's problem is production and not "low demand."

However, analysts seem to have different views from the chief, Business Insider reported. It said the car's demand has been intense from the end of 2014 and throughout 2015 only because the company was prepared its built-from-scratch Model X SUV.

Then, will Tesla also see success for its mass-produced Model 3 So far, the company seems to have made quite success. It has already drawn more than 400,000 customers for its pre-orders of Model 3 and it seems likely that the company could achieve a goal of drawing 500,000 customers by 2020.

However, there is still one issue to address. Will Tesla be able to produce all of them and deliver to the clients on time by 2020

According to the news report, Tesla's maximum production was slightly over 50,000 units last year and likely to produce around 100,000 units this year. So it seems difficult to produce 500,000 units in four years.

Business Insider suggested two possible ways. One thing is to get pre-orders only for the most expensive model Model 3s, which stands at around $35,000, to slow the demand. Second, it can stop pre-orders. By doing so, the company can give up the $1,000 deposits but it can at least produce 50,000 units of Model 3 in time.

The company can also outsource the new vehicles but in the case the sales of the company will also be reduced accordingly, according to the news report.


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