TESLA Cancellations Outpace Purchases

Cancellations for Model 3 orders have picked up in recent weeks. Refunds now outpace deposits for Tesla’s new mass-market electric car, according to Needham & Co. analyst Rajvindra Gill. Tesla disputes that.

In an analyst note delivered to clients Thursday, Gill cited extended wait times for the car, the expiration of a $7,500 tax credit, and the fact that Tesla has not yet made the $35,000 base model of the car available for purchase yet.

About one in every four Model 3 orders is canceled, Gill said, double the rate from a year ago. Customers have to put down a refundable $1,000 deposit to reserve a Model 3, then pay another $2,500 to choose their specific version. They pay the rest when the car is delivered.

We are primarily funded by readers. Please subscribe and donate to support us!

The wait time for a Model 3 is about 4 months to a year, and base model customers could wait until 2020, Gill said.

A Tesla spokesperson denied that Model 3 cancellations exceed new orders. The spokesperson also said the wait times that Gill cites are outdated. Tesla’s website currently lists wait times from 1 month to 9 months.

money.cnn.com/2018/07/19/technology/business/tesla-downgrade/index.html

Views:

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.