In August 2017, Tesla CEO Elon Musk revealed that Model 3 had 518,000 gross reservations and 455,000 net reservations. Simply put,  63,000 customers (12%) cancelled their orders and took their refund.

According to data from Second Measure, Tesla has refunded 23% of deposits since reservations began. While new reservations have remained at a level, refunds have accelerated in the last few months.

What could be the reason?

For any automaker, the full tax credit for their customers ends a few months after it sells its 200,000th plug-in car in the United States.

Once the full tax credit disappears, for the next six months, buyers get a $3,750 credit. Then it drops to $1,875 during the following six months.  – CNN Money

  1. Tesla is still building higher priced versions of Model 3 – way above the expected $35,000 level. 
  2. As soon as Tesla hits 200,000 sales milestone in United States, federal tax credit will phase out. This further stretches Model 3 price, disappointing customers who thought they would be able to buy Tesla Model 3 for less than $30,000. 
  3. Wait-listed customers still don’t know when they will get their car.  But this factor could quickly change, if Model 3 ramp up continues the brisk pace it has set in the last couple of months. 
  4. You can always book the car again. Everyone knows that its going to take some more time before Model 3 price drops to $35,000 and Tesla is ramping up furiously. Why not wait for things to settle down and then pay the deposit. 

 

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