Want to buy a Tesla Model 3? Join the queue.
Tesla announced yesterday it is receiving more than 1,800 reservations a day for its affordable electric car model, Tesla Model 3. Last week saw the handover of the keys to the first 30 owners of the newly launched electric vehicle. At the launch, Tesla CEO, Elon Musk said the reservation list was hitting about 500,000. In a conference call later in the week, he clarified the number to be closer to 450,000 after admitting they have had a significant amount of orders canceled in the last few months. Musk appears unphased by the canceled orders though saying, “Those cancellations occurred over the course of more than a year. I think [these numbers] are inconsequential. With a small amount of effort, we can easily drive the Model 3 reservation number to something much higher but there’s no point. 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?”
[Image Source: Tesla]
Tesla needs to make 10,000 vehicles a week by 2018
Tesla is in an enviable position of having the demand for the vehicle but now needs to amp up production while retaining the quality and deadlines it has already set. Tesla claims it is "on track" to hit its predicted production goals. 5,000 vehicle are expected to be able to be produced by the manufacturer before the end of 2017 and this number should double by the end of 2108. Musk said on Wednesday, "What we have ahead of us, of course, is an incredibly difficult production ramp.” He went on to stress there was absolutely no risk of missing the 10,000 mark next year. He candidly claimed, "This is maybe the best I've ever felt about Tesla, to be frank. Last week stressed the Hell out of me.”
[Image Source: Tesla]
Other Tesla models increase in demand adding to production 'hell'
But the Model 3 isn’t the only Tesla model in demand, production in other areas is also growing fast. More than 25,000 vehicles were produced by Tesla in the second quarter of 2017, up 40% from the same time last year. And despite the launch of the more affordable Model 3, Tesla has reported that its luxury cars, the Model S and Model X are also increasingly in demand from consumers.
While Tesla doubles its sales for the quarter, its losses also increased 37% hitting $401 million USD. Despite the losses, Tesla stock jumped 8% after the losses were posted.
Musk admits to feeling the stress of high-stakes business
Tesla CEO, Elon Musk splits his time between his diverse business interests. He is an avid Twitter user and unusually for a such a high -profile business person shares both personal and business news on his personal account. In a recent exchange with a follower, Musk admitted to experiencing high stress and terrible highs and lows. He suggested he may suffer from a mental health condition.
The reality is great highs, terrible lows and unrelenting stress. Don't think people want to hear about the last two.
— Elon Musk (@elonmusk) July 30, 2017