Tesla Model S

Tesla Model S

Tesla Model S in Australia

Tesla Model S in Australia

It seems like every time that supply of the Tesla Model S begins to catch up with demand, Tesla Motors responds by making the Model S available in more countries or by adding new feature sets to the Model S to reignite demand.

Therefore, it seems that demand for the Model S almost always outstrips supply.

Global Equity Research’s Trip Chowdhry believes that demand for the Model S still outstrips supply.  Here's how he explains the current situation (via Barron's):

  • Tesla’s Factory in Fremont is currently manufacturing about 1,200 to 1,250 cars per week
  • The shift to 85kWh version of Model S is very significant. 85kWh version of Model S is $10K more than 60kWh version of Model S
  • This quarter, probably between between 3,000 to 4,000 P85D’s will be delivered, with an average ASP of $129K
  • We estimate that the above will probably increase the ASP by about 5% to 8%
  • Demand continues to outstrip Supply: Everyday probably between 170 to 200 of Model S are being booked
  • Tesla’s Autopilot, Instant Torque, Safety, Designer Looks and Driving experience, are the primary reasons Tesla’s Demand is outstripping Supply
  • Starting last week of December’2014, some stores may have P85D for test drives, with probably all the stores having P85D available for test drives by March’2015
  • Once TSLA starts giving the Test drives on P85D, the demand for P85D could just continue getting strong
  • Every data point we have indicates that Demand is outstripping Supply
Gauging Model S demand is tricky business and with Tesla's refusal to report monthly sales, it's hard to put an exact figure out, but we agree at least in part with Chowdry's insistence that demand still exceeds supply through year's end and into early 2015.

Source: Barrons