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Tesla Set to Deliver First of Its Lower-Cost Model 3 Cars July 28
July 3, 2017
Tesla Inc. Chief Executive Elon Musk indicated late Sunday that the company would deliver the first batch of its new Model 3 sedans on July 28.
Customers and investors have been eager to know when the Silicon Valley company will start delivering the car, which at $35,000 is far less expensive than its two existing models and which Tesla intends to sharply increase its total sales.
Tesla had said production would start this month, but hadn’t given a date for deliveries. Mr. Musk, who frequently announces plans on Twitter , teased in a tweet in the early hours of Friday morning Eastern time that there would be related news Sunday.
After being silent on the subject most of Sunday, shortly after 11 p.m. Pacific time he tweeted: “Handover party for first 30 customer Model 3’s on the 28th!” He said in separate messages that the car had “passed all regulatory requirements for production,” and that Tesla is on course to produce 20,000 Model 3s a month in December.
Tesla is scheduled to disclose global vehicle sales for the second quarter as early as Monday morning. The company is projected to have sold 23,655 vehicles during the three-month period, according to the average estimate of four analysts surveyed by The Wall Street Journal.
The Model 3 is part of Mr. Musk’s strategy to boost production next year to 500,000 from about 84,000 last year, turning the auto maker into a more mainstream player from a niche luxury brand.
Firstly, we note that the Company has NOT announced “in-transit” vehicles this quarter. This is the first time the Company has deviated from its practice of disclosing in-transit deliveries in the recent past. Note also that we have already noted Tesla is dipping in to the in-transit well to make it appear that its deliveries are meeting guidance when in actuality they do not appear to be.
Given the Company’s arguably ongoing history of misleading investors, not announcing vehicles-in-transit likely means that Tesla missed the guidance once again. The demand problem and the inventory build-out are worse than they appears to be.
UPDATE - Tesla Q2 2017 Vehicle Production and Deliveries
July 7, 2017 12:32 p.m. ET
PALO ALTO, Calif., July 07, 2017 (GLOBE NEWSWIRE) -- UPDATE: In response to questions we have received about the number of customer vehicles in transit at the end of Q2, we are updating our Q2 delivery release to provide this information. This information will continue to be included in all future quarters.
In addition to Q2 deliveries, about 3,500 vehicles were in transit to customers at the end of the quarter. These will be counted as deliveries in Q3 2017.
Tesla delivered just over 22,000 vehicles in Q2, of which just over 12,000 were Model S and just over 10,000 were Model X. This represents a 53% increase over Q2 2016. Total vehicle deliveries in the first half of 2017 were approximately 47,100.
The major factor affecting Tesla's Q2 deliveries was a severe production shortfall of 100 kWh battery packs, which are made using new technologies on new production lines. The technology challenge grows exponentially with energy density. Until early June, production averaged about 40% below demand. Once this was resolved, June orders and deliveries were strong, ranking as one of the best in Tesla history.
Provided global economic conditions do not worsen considerably, we are confident that combined deliveries of Model S and Model X in the second half of 2017 will likely exceed deliveries in the first half of 2017.
Q2 production totaled 25,708 vehicles, bringing first half 2017 production to 51,126.
Our delivery count should be viewed as slightly conservative, as we only count a car as delivered if it is transferred to the customer and all paperwork is correct. Final numbers could vary by up to 0.5%. Tesla vehicle deliveries represent only one measure of the company's financial performance and should not be relied on as an indicator of quarterly financial results, which depend on a variety of factors, including the cost of sales, foreign exchange movements and mix of directly leased vehicles.
Tesla held its handover party for the Model 3 on Friday night, kicking off the start of production for its first mass-market vehicle.
Tesla has secured an estimated 500,000 pre-orders for the Model 3 since the vehicle was first unveiled in March 2016. Starting at $35,000, the Model 3 is Tesla's first car geared at a consumer audience.
Despite its 2016 unveiling, Tesla CEO Elon Musk still had a few surprise announcements about the Model 3. Here's everything you need to know:
Tesla will offer six color options for the Model 3:
Black
Midnight Silver Metallic
Deep Blue Metallic
Dilver Metallic
Pearl White Multi-Coat
Red Multi-Coat
Tesla's big selling point for the Model 3 is its affordability, with a starting price of $35,000 before tax incentives. The base Model 3 can drive 220 miles on a single charge, accelerate to 60 mph in 5.6 seconds, and reach a top speed of 130 mph.
The latest models of the Nissan Leaf and the Hyundai Ioniq Electric cost about $30,000 but have more limited ranges of 107 miles and 124 miles.
The Model 3 will compete more closely with the Chevy Bolt, which can drive 238 miles on a single charge and starts at $37,495.
Tesla will also sell a premium version of the Model 3 with a range of 310 miles. Priced at $44,000, the car can accelerate to 60 mph in 5.1 seconds and reach a top speed of 140 mph.
Customers who pre-ordered the Model 3 will be contacted when Tesla is ready to produce the car. If they choose to keep the base option, the car won't start rolling out until fall of this year. Those who pay extra for the Premium trim may get the car earlier, as Tesla will begin producing the high-end models this summer.
The sedan features a clean design.
Like the Model X, the handles are flush with the door.
The interior is also very minimalist and no-fuss. A massive, 15-inch tablet replaces a traditional instrument cluster.
There are no buttons or knobs — just the massive display. Unlike the Model S and Model X, the tablet in the Model 3 is horizontal.
Here's a look at the back seats. Those can fold down if you want more room in the trunk.
The roof is basically all glass. That should make for some nice views!
Tesla said the Model 3 was designed to achieve a five-star safety rating.
Tesla has been a leader when it comes to safety. The government recently dubbed the Model X the safest SUV ever after it earned a five-star rating in every safety category and subcategory.
The Model S has also secured a five-star rating in every category. Musk showed a crash test at Friday's event where a Model 3 appeared to fare better than a Volvo S60, which has received a five-star safety rating.
The Model 3 comes equipped with a new suite of sensors that can support full autonomy.
The Model 3 comes with seven cameras, one radar sensor, 12 ultrasonic sensors, and a new Nvidia Drive PX2 supercomputer to support Tesla's second-generation Autopilot system, dubbed Enhanced Autopilot.
Tesla says Enhanced Autopilot will eventually allow the car to match its speed to traffic conditions, automatically change lanes without driver input, merge on and off highways, and park itself. Tesla owners could also summon the car in more complex environments, like a crowded parking lot.
It costs an extra $5,000 to activate Enhanced Autopilot features at the time of purchase, but standard safety features will come free.
Tesla says the new hardware will eventually allow the cars to drive themselves. But the self-driving feature will cost an additional $3,000 after purchasing Enhanced Autopilot. The regulatory environment will determine when Tesla can release the fully driverless system.
Tesla is offering a suite of upgrades for the Model 3.
Tesla customers can opt to get the Premium Upgrade package for $5,000, which includes features like USB ports, a tinted glass roof with ultraviolet and infrared protection, LED fog lamps, and surround speakers.
The Model 3 comes with 18-inch wheels, but customers can pay an extra $1,500 for 19-inch Sport wheels.
Anyone interested in ordering a Model 3 now will have to wait. Tesla says Model 3 deliveries for people who order today will begin mid-2018 the earliest.
For new customers, Tesla is only selling Premium Model 3 sedans with rear-wheel drive at the moment.
I'm guessing there may be some HUD system? Cause who wants to be looking over to the center console for all your critical vehicle stats while driving.....
Tesla also revealed the Model 3’s measurements, which fall in between a BMW 3-Series and an Audi A4: 184.8 inches long, 72.8 inches wide, 5.8 inches high, wheelbase 113.2 inches (the latter 2 inches longer than the 3-Series and A4). The curb weights for the hybrid steel/aluminum body are 3,549 pounds for the base model and 3,814 for the Long Range model with all those extra batteries. Weight distribution is 47/53 f/r base, 48/52 Long Range.
Tesla lists an incredible (as in, hard to believe) coefficient of drag of 0.23.
Tesla lists suspension as double wishbone, virtual steer axis front suspension with coilover twin-tube shock absorbers and stabilizer bar in front and independent multi-link rear suspension with twin-tube shock absorbers and stabilizer bar rear. Steering is variable-ratio, speed-sensitive electronic power steering. Brakes are listed as electromechanically boosted four-wheel anti-lock disc brakes with electronic brake force distribution.
The interior is what you would call stark, with a big 15.4-inch touchscreen dominating the dashboard and an optional single slab of wood laid across the IP behind it.
Musk described it as a "simple clean design, because in the future cars will be increasingly autonomous so you won’t really need to look at an instrument panel very often.”
The monster sunroof looms above the interior in the photo we got from Tesla. (All photos are from Tesla, btw.)
All of which is well and good, but when can you expect your Model 3?
“The most common question I get on Twitter is, ‘Where is my Model 3?’" said Musk. “Sometimes it’s not phrased as nicely as that. We’re building cars as fast as we can.”
Musk said production would ramp up to 10,000 cars per week by the end of next year. It may ramp up slowly because they want to get it right.
“We agonize over every detail, we care about every part of it,” he said. “How do we build a huge number of cars? Frankly, we’re gonna be in production hell. Welcome to production hell. That’s gonna be where we are for at least six months. If you’re going through hell, keep going.”
Will all this work? Will those hundreds of thousands of depositers get their cars? Will the door handles work? And what about Elon? Will he find happiness on Mars? There are a lot of questions still to be answered in the next episode of "As Tesla Turns."
so here's my take on the reveal (i put a refundable deposit in on april 1, 2016):
the good:
- i was expecting almost no options or trim levels at this time (i know they are further away from building those), so i was pleasantly surprised that they talked about various options and trim
- i like that they have a 310 mile battery option, which for me anything over 250 is ideal
- i like that they put the speed reading in the upper left, i was worried that it would be distracting and a pain to look at, but it's actually very close to, if not in, the field of view.
- i like the minimalist approach for the interior
- i like the overhead glass
- i am very happy they offer it in white...the earlier reports of them not having white as an option was a deal breaker for me
the bad:
- i still think the overall look of the car is very bland and not eye catching
- i absolutely hate the wheels haha
- the price...35k is merely a marketing ploy. basically almost every car sold will be about 44k and not 35k
- timeline: i still think they are going to have a very very hard time to get these produced at the rate they want. i think they won't start ramping up until mid 2018 (not a bad thing for me since i'm in no hurry).
overall: i'm still keeping my deposit in until they tell me i have to decide and then i'll make the decision then. there's a few factors that will lead my decision at the time but right now i'm leaning towards NOT getting the model 3
- how reliable these cars prove in the very beginning
- how much cost and downtime play a role if anything breaks (shops have to be tesla approved)
- how much my insurance will go up (AAA said insurance is higher for tesla cars because they can only be worked on by specialty shops)
- my current living situation and if my place is built to change my tesla electronic wise
- the actual leg room of the backseat (i am a family of 3 now possibly 4 down the road)
- how i feel at the time on owning something that i can happily mod and DIY vs getting a car that's just a get in and go thing
- the actual price of my built out tesla and how much the rebate helps. right now i'd have to get all options and that puts me at a price point of 59,500 which is way more than i ever want to spend on a car. my personal max is about 40k and even that is pushing it. at that price point (40k) i'd rather get a CPO backed S4 or an audi a6 3.0 that i can mod to my liking
interesting and exciting nonetheless to FINALLY see them built
I'm guessing there may be some HUD system? Cause who wants to be looking over to the center console for all your critical vehicle stats while driving.....
Reminds me of my wife's previous car - 2008 Yaris...lol
I'm guessing there may be some HUD system? Cause who wants to be looking over to the center console for all your critical vehicle stats while driving.....
HUD would definitely be nice, not sure how I'd like the center display only. But, with their push for autopilot, kinda makes HUD less necessary
This isn't exactly a review, but this is a really important thing we all understand that non-enthusiasts don't get (albeit from an odd source). By most accounts, this is missing a number of features in the standard model that would make it true "luxury" even compared to the TLX.
The big number surrounding Tesla’s Model 3 has been $35,000, which is the base price for the electric car. But there’s one big problem: barely anyone will pay that price, if they want a Model 3 with autopilot (which, let’s face it you do), or even a color other than black, according to screenshots of the Model 3 configurator postedin the Model 3 Owners Club.
The truth is the Model 3 costs $40,000 if you want a standard version with autopilot (an extra $5,000) in black with no other options. If you want a different color, add $1,000. And if you want a longer range ($9,000) to get over 300 miles per charge instead of 220, well now we’re at $50,000.
$50,000 for a midrange car.
If you’re new to cars, that isn’t exactly midrange car pricing, having clearly pushed into luxury sedan territory, with the likes of the Volvo S90 ($46,950) and Lexus GS ($46,310) and the Audi A6 ($47,600). Even the Model 3’s direct competition, the BMW 320i, maxes out at $47,175. And again, this is before adding the usual slate of premium options like leather seats, power adjustable seats and power folding side mirrors, and rear USB ports (another $5,000).
So if you’re about to drop at least $50,000 on a Model 3, does it qualify as a luxury car? For most people, no. Not unless you’re willing to spend closer to $60,000 (and at these prices, you’ve reached BMW 5 Series and Mercedes E-Class territory). If you’re willing to spend that much, then there is no issue for you. But if you thought spending the $35,000 would net you a car comparable to a BMW 3 Series, well, it really won’t.The Model 3 might not measure favorably up against the tried and true luxury sedans from the likes of BMW and Mercedes. So how does it fare compared to the other leading electric vehicles like the Model S and Chevy Bolt?
If you purchase a standard Tesla Model 3, the seats must be manually adjusted, as will the steering column. The side mirrors aren’t powered or heated, and there’s no auto dimming. There are no LED fog lamps, and if you want a covered storage area in the center console, you must pay extra. Unless you spend $5,000 for the Premium Upgrade, you’re essentially getting the interior of a base model Toyota Camry. (To be fair, the Camry comes standard with a covered center console.)
If you’re looking for what you’ve seen in the Model S — a premium interior, autopilot, and around 300 miles of range in a color of your choosing — in a smaller form factor, well you’re not getting out without paying at least $55,000. That will be fine for some people, but I doubt the 500,000 people who put down $1,000 to reserve a Model 3 expected the price to increase by $20,000 to reach that mark.This may be a product of uncontrolled hype, Tesla not doing enough to clarify what the Model 3 would be, or the company going too far to meet that $35,000 benchmark, but it wouldn’t surprise me if regular people get sticker shock once Tesla publicly releases the Model 3 configurator online.
The Tesla Model 3 isn’t a luxury car, it’s a midsized car masquerading as one. If you’re in the market for just another car in your price range, the Model 3 may not be for you. But if you’re looking for a smaller Model S, or the electric car of the future, you’ve found it. Just know it’ll cost a lot more than $35,000.
This isn't exactly a review, but this is a really important thing we all understand that non-enthusiasts don't get (albeit from an odd source). By most accounts, this is missing a number of features in the standard model that would make it true "luxury" even compared to the TLX.
...and this will be the huge catch that will plague this car. The "premium package" should be standard at that price point same as the paint. The rest I can understand but the price tags for each are rather high. $9k for the extended range is a bit much but whatever and autopilot, which is a hallmark of Tesla, should come included in every car no matter what. It should top out at ~$50k for an all in car (other than random options), not $60k.
...and this will be the huge catch that will plague this car. The "premium package" should be standard at that price point same as the paint. The rest I can understand but the price tags for each are rather high. $9k for the extended range is a bit much but whatever and autopilot, which is a hallmark of Tesla, should come included in every car no matter what. It should top out at ~$50k for an all in car (other than random options), not $60k.
I tried to build a loaded 2018 A4 to see the price, but the Optic package crashed the website. Either way, you can get a lot of BMW or Audi for $60k
The pricing is nothing new. Teslas never have been about value. You're basically paying an extra for the future tech, features of an electric vehicle, and the novelty. The Tesla Roadster had the perception of an overweight, electric Elise with none of the typical Lotus charms, but fewer of their drawbacks as well. But yet it cost $100k.
The Model S has dimensions similar to a 5-series, E-Class, A6, etc. Yet the Model S can easily go up into the same price bracket as the 7, S-Class, and A8. Interestingly enough, at least around here (tech/liberal heaven) I would say I see more Model S' than I do the other three, combined. I looked it up, and the sales numbers explains that.
People will buy the Model 3. I'm sure with every new batch of Tesla owners, there are some that will refuse to buy anything but an EV. That number will only grow now that the price is almost half of a Model S.
The pricing is nothing new. Teslas never have been about value. You're basically paying an extra for the future tech, features of an electric vehicle, and the novelty. The Tesla Roadster had the perception of an overweight, electric Elise with none of the typical Lotus charms, but fewer of their drawbacks as well. But yet it cost $100k.
The Model S has dimensions similar to a 5-series, E-Class, A6, etc. Yet the Model S can easily go up into the same price bracket as the 7, S-Class, and A8. Interestingly enough, at least around here (tech/liberal heaven) I would say I see more Model S' than I do the other three, combined. I looked it up, and the sales numbers explains that.
People will buy the Model 3. I'm sure with every new batch of Tesla owners, there are some that will refuse to buy anything but an EV. That number will only grow now that the price is almost half of a Model S.
True for Model S and X but the 3 was always hailed as being about value for money.
On July 28, 2017, we started delivering the “even more affordable car” from our original Master Plan. This was a huge milestone for Tesla and is very exciting for our entire team.
Orders for Model S and Model X have also been increasing, both leading up to and following the Model 3 handover event. In July, our weekly net order rate for these vehicles was about 15% higher than our Q2 average weekly order rate.
In addition, although too early to draw strong conclusions, we are seeing an even further increase in net Model S orders since the July 28th event. This growing demand gives us even more reason to expect increased deliveries of Model S and Model X in the second half of this year.
In addition to the increased orders for Model S and Model X, customer response to Model 3 has been overwhelming. Since the handover event last week, we are averaging over 1,800 net Model 3 reservations per day.
06-13-2017, 03:34 PM
