If you haven’t been paying attention to the automotive industry recently, there’s a new company known as Tesla owned by the multi-billionaire Elon Musk in town. Tesla makes the fastest electric cars by far in the industry.
On the 31st of March, Tesla announced it’s new Model 3 aimed towards customers who really love the Model S, but do not have $70,000 to fork out. Due for release in 2017, at $35,000, the Model 3 has already raked up nearly 400,000 reservations. Each reservation costs $1000 so Tesla has bagged about $400 million to fulfill its promises already, but with limited information provided to its customers about the new Model 3, is it a risk to pre order it?
Actually, yes. The only thing we know about Musk’s new car is that it can go from 0-60 in about 6 seconds (For comparison sake, the Model S in ludicrous mode goes from 0-60 in 2.8 seconds), it will run 215 miles on a single charge and it has a pretty minimalist interior design which has raged a love-hate relationship in the community. Considering this and amount of pre-orders it has received, here are a few reasons you may probably be better off abstaining your pre-order:
- The Model X was delayed for two years
The first prototype and information about the Model X was revealed in February of 2012, but it wasn’t until September 2015 that deliveries began. And even then, the automaker only managed to deliver 208 units by the end of the year. Of course, there isn’t enough data to form a judgment, but there’s a reason that CEO Musk chuckled when he mentioned that he feels “fairly confident” that deliveries would start next year for the Model 3.
- Tesla has a Limited Production Capacity and is New to Mass Production
Tesla expects to deliver around 90,000 vehicles to customers by the end of 2016. Adding a third vehicle to the already stressed assembly line will only further complicate things and it’s evident that Tesla is still getting a hold on Model X production. Fortunately, the company has more than a year to square things off with the existing Model S and Model X before it adds the Model 3.
3. There could be better options by 2018
One has to understand that the overwhelming response received by the Model 3 has a lot to do with the popularity of the Tesla brand. But it is arguable that there will be better options by 2018 or even late 2017 that could possibly persuade people to cancel their preorders and buy something otherwise. Nissan is already working on an all new Leaf electric vehicle, and it shouldn’t be surprising to see Chevrolet overhaul its Bolt in time for the Model 3 deliveries to stay competitive.
But then again, would you choose driving a Leaf or a Bolt over a Tesla?