Photo: Unknown via Craigslist
The 500,000-odd people who had placed a deposit for the Model 3 ahead of its launch didn't do so on a particular trim level of spec. It was just a reservation that allowed them to be among the first presented with the opportunity to choose between the different versions.
Except Tesla is only selling the long-range single-motor Model 3 at the moment, with all reservation holders who would like to opt for the cheaper version having to wait until the company is ready to roll them out as well.
This is how it goes right now: whenever their turn in the queue comes, they receive an email inviting them to configure their Model 3. If they choose the 310-mile option, they get a relatively short delivery date (four weeks tops). If, however, they would like to hold out for the promised $35,000 model, they were given a much vaguer deadline. Apart from that, it's just a matter of choosing the wheel design and exterior color.
As you would imagine, most people saw no problem paying well over the $35,000 mark (average price so far is over $50,000) if that meant they could have the car they've been waiting for since nearly two years ago sooner. And that played well with Tesla, because the profit margin for a $55,000 car is a lot greater than on a $35,000 one that's identical from a hardware standpoint.
Having just announced a record loss during the first quarter of 2018 ($675.4 million, to be exact), Tesla has now decided to push the deliveries of its standard Model 3 version even further back. It would seem first-day reservation holders are now getting a "late 2018" estimate, while those who placed their deposit on the second day can expect delivery in "early 2019."
This might come as a blow for those who had already opted for the lower-priced car, and are now finding out they'll have to wait even longer than they initially thought. We don't know whether they can change their option, but Tesla should definitely allow them that. Not only would it account for happier customers, but also mean more money in the bank for the company itself.
This is how it goes right now: whenever their turn in the queue comes, they receive an email inviting them to configure their Model 3. If they choose the 310-mile option, they get a relatively short delivery date (four weeks tops). If, however, they would like to hold out for the promised $35,000 model, they were given a much vaguer deadline. Apart from that, it's just a matter of choosing the wheel design and exterior color.
As you would imagine, most people saw no problem paying well over the $35,000 mark (average price so far is over $50,000) if that meant they could have the car they've been waiting for since nearly two years ago sooner. And that played well with Tesla, because the profit margin for a $55,000 car is a lot greater than on a $35,000 one that's identical from a hardware standpoint.
Having just announced a record loss during the first quarter of 2018 ($675.4 million, to be exact), Tesla has now decided to push the deliveries of its standard Model 3 version even further back. It would seem first-day reservation holders are now getting a "late 2018" estimate, while those who placed their deposit on the second day can expect delivery in "early 2019."
This might come as a blow for those who had already opted for the lower-priced car, and are now finding out they'll have to wait even longer than they initially thought. We don't know whether they can change their option, but Tesla should definitely allow them that. Not only would it account for happier customers, but also mean more money in the bank for the company itself.
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