Multiple customers reported on Reddit Tesla Motors forum that Tesla has changed their Model 3 Performance Version delivery timeline from “by October” to “by late September”. Tesla generally delivers more cars as it nears the quarter end.
If reports from multiple Tesla customers are true, it will do a world of good for Tesla’s bottom-line performance during the third quarter.
Did everyone else’s P3D order status update tonight from “by October” to “by late September”? from r/teslamotors
What’s so different about Model 3 Performance Version?
For starters, the Performance version starts at $64,000. Add another $5,000 for Enhanced Autopilot and $3,000 for for Full Self-Driving Capability, then you are looking at a price tag of $72,000.
According to two Model 3 tear down reports, one from Germany and one from United States, the All-Wheel-Drive Long Range Battery Model 3, which starts at $54,000 is sitting pretty with double digit gross margins. The higher priced Performance Version will offer even better margins for Tesla.
Car for Car, Tesla would be more than happy to sell as many higher end models as it can and boost its profits.
Why does it matter?
Tesla has repeatedly said that the company will be GAAP profitable during Q3 and Q4-2018. For a company that is well known for spending more than what it earns, it will be a huge achievement.
Tesla has pulled several levers in its quest to profitability. The company announced a 9% workforce reduction in June, closed down several Solarcity facilities, while ramping up Model 3 production to more than 5,000 units per week.
Tesla expects non-GAAP operating expenses during the second half of the year to remain relatively stable at Q2 levels. If Tesla sells more higher margin models (Performance Model 3), it will make the company’s path to profitability that much easier.
VIN Registrations
Nearly 72% of VINs registered between June 28 and August 21st were Dual Motor All Wheel Drive versions. Tesla has sold a higher number of its mid variant, compared to the other two models. This points to a healthy average selling price for the third quarter.
Model 3 Performance Version has got rave reviews from auto journalists
Motortrend: “It’s pure jungle cat”
Wall Street Journal: “But the car is a star. Doubters will have to bring it. Show me another car with an all-glass roof and five-star rollover crash rating. Point out another $80,000 sedan that out-clouds a Rolls-Royce, out-punches a Porsche Boxster and gets an electric equivalent of 116 mpg. You can’t, unless you’re building something in your garage we don’t know about.”
Autoweek:The newest 3 is smaller, lighter and more nimble than the Model S flagship, making it –- potentially — the Best Tesla you can buy
The Delivery Ramp: Tesla is expecting to deliver 50,000 to 55,000 Model 3s during the third qurter, significantly higher than the 18,440 units the company delivered during the second quarter of 2018.
