The popularity of the Tesla Model 3 is staggering, especially when considering the circumstances.
Delivering over 400,000 Tesla Model 3s is sure to be an epic feat, but how about 700,000?
As the days since the Tesla Model 3 handover party and the automaker's Q2 earnings call accumulate, it's starting to become less of a surprise as to why CEO Elon Musk has shared that Tesla is essentially trying not to sell the Model 3. Several hundred thousand cars for a small company that hasn't made that many thus far is one thing, but when the number has the potential to head up closer to a million orders, it must become just plain scary to all involved.
Inside the Tesla Model 3
Despite still not having every juicy detail about the car, despite many people still not having an opportunity to see it in person, despite the fact the Tesla has only successfully produced a mere handful of "3s", despite the lack of base models initially (as well as certain standard features and options), despite the federal rebate set to disappear, despite having to wait perhaps a few years for their vehicle, and this list goes on and on -- people are still ordering Tesla Model 3s at an alarming rate. According to Tesla, the orders are averaging 1,800 every day.
Last we heard, current reservations were up to 455,000 (and that was many days ago), after about 67,000 people cancelled their original pre-order. If the pre-order binge continues, Tesla is looking at an additional 250,000 orders just this year.
Previously, Tesla CEO Elon Musk said that Tesla has the potential to make about 500,00 cars per year by the end of 2018. This is reportedly about max capacity for the factory in Fremont (give or take depending on utilization of the Tesla Gigafactory for additional component production). Some statements actually reported that the CEOs statement was in reference to 500,000 Model 3s alone. Either way you look at it, it's a ton of cars for an automaker that's made less than 200,000 since its inception, and 84,000 in 2016.
Now, Musk is upping these numbers to some 700,000 cars per year, and said that number could eventually escalate. Is this just to appease the long list of Model 3 reservation holders? Is it an attempt to assure that folks are aware Tesla is attempting to get every last reservation filled well before the end of next year? Is this referring to after Tesla is able to secure or construct another factory?
Specific answers aren't yet clear. Nonetheless, Tesla is seeking to fundraise yet again to create a $1.5 billion cushion to aid in the process. With Musk's updated average price estimation for the Tesla Model 3 up to $45,000, the automaker is looking at some $30 billion in revenue from the Model 3 when it's all said and done.