Elon Musk Shrugs Off Wave Of Tesla Customers Deserting Their Model 3 Orders

[IAMX 3,055]

 

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Tesla CEO Elon Musk said Friday that more than 60,000 customers have canceled their pre-orders for the moderately priced Model 3.

 

Total orders for Tesla’s Model 3 tumbled to 455,000 from a high of 518,000, Musk told reporters, but the news of the defections didn’t seem to bother the billionaire tech entrepreneur. He compared the dropped orders to customers at a fast food restaurant that drop out of line because they’re tired of waiting for their orders to come.

“It’s like if you’re a restaurant and you’re serving hamburgers and there’s like an hour-and-a-half wait for hamburgers — do you really want to encourage more people to order more hamburgers?” Musk said. Customers who put down a deposit probably won’t see their Model 3s until the end of 2018.

 

 

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Production on the highly touted vehicle is expected to expand from 100 cars in August to 1,500 in September, and plateau to 20,000 per month in December. Musk plans to eventually build 20,000 cars per month.

The Model 3 sedan, which was unveiled July 30, is priced at $35,000 before incentives or options but could increase if customers waiting on backorder prefer a model with a larger battery. Tesla produced roughly 85,000 vehicles in 2016 and plans to make half a million in 2018.

 

 

http://dailycaller.com/2017/08/04/elon-musk-shrugs-off-wave-of-tesla-customers-deserting-their-model-3-orders/

 

With this highly ramped up production that will result in a massive inventory (if people start receiving them end of 2018 that means 2020-2021 will start seeing the effects), so much so they'll likely overproduce, which will likewise bring the price down, combined with resales. Pretty exciting years coming up. Can you feel that pressure, OPEC? Better get back to production and let oil tumble to $20 a barrel or under, otherwise the cartel's grasp on the auto industries is going to collapse.

Edited August 4, 2017 by IAMX

[Dashinka 26,010]

10 hours ago, IAMX said:

 

 

 

http://dailycaller.com/2017/08/04/elon-musk-shrugs-off-wave-of-tesla-customers-deserting-their-model-3-orders/

 

With this highly ramped up production that will result in a massive inventory (if people start receiving them end of 2018 that means 2020-2021 will start seeing the effects), so much so they'll likely overproduce, which will likewise bring the price down, combined with resales. Pretty exciting years coming up. Can you feel that pressure, OPEC? Better get back to production and let oil tumble to $20 a barrel or under, otherwise the cartel's grasp on the auto industries is going to collapse.

I think OPEC is already feeling the pinch of American technology.

 

Another reason to expect little action on Monday is that OPEC is still weighing how to deal with U.S. producers, which remain largely outside of the cartel’s control.

Shale drillers—which work on shorter-term projects than traditional oil producers—took advantage quickly when oil prices briefly rose last year after the OPEC deal, sending more crude into global supply. They also have learned to drill at lower prices, and U.S. production has maintained its upward swing even as prices have been depressed this year.

 

https://www.wsj.com/articles/opec-grapples-with-growing-threats-to-oil-deal-1500815977

 

Although I agree with Musk here that the reduction in orders is likely a non-issue, but some of it may be due to other EV offerings which means Tesla is not the only player going forward.