Just a three-day supply of Tesla Model 3 vehicles compared to the industry average of about 60 days?
According to a report by Autoline Daily, it appears the answer to the above question is ... yes. The report cites a previous Automotive News share (April 1, 2018 - though not a joke) that shows over four million unsold inventory vehicles from all automakers combined in the U.S., which breaks down to a 69-day supply. 1redDrop has no information related to Autoline's source for specific Model 3 inventory figures, but admits that it only makes sense that the Silicon Valley automaker would have fewer cars on hand than traditional OEMs.
We agree that this report comes as no surprise. While Tesla hasn't recently revealed specifics about reservation cancellations or incoming orders, the Tesla Model 3 reservation list is still likely massive and the automaker is racing to build and deliver as many cars as possible, meaning nearly every single car it makes has a potential owner waiting. According to Tesla's second-quarter delivery report:
The remaining net Model 3 reservations count at the end of Q2 still stood at roughly 420,000 even though we have now delivered 28,386 Model 3 vehicles to date.
In July, a Tesla spokesperson responded to a Twitter user inquiring about Needham Analyst Downgrading Tesla stock. CEO Elon Musk also chimed in:
Dunno where this bs is coming from. Who knows about the future, but last week we had over 2000 S/X and 5000 Model 3 *new* net orders.
— Elon Musk (@elonmusk) July 20, 2018
Tesla is clearly not constrained by a lack of demand like many legacy automakers. Some traditional OEMs build a multitude of cars that sit on dealer lots for quite some time. Tesla doesn't have dealerships where it can simply drop off inventory and move along. It has to rely on multiple holding lots, a lack of an adequate supply of car haulers, and a smaller number of delivery centers in various areas of the country.
The report reminds us that Tesla manufactured 5,300 Model 3 sedans in the final week of the third quarter and almost certainly each one had already been spoken for.
1redDrop concludes that Tesla's successful ramp-up of Model 3 production and delivery timelines should only work to attract more buyers. So, don't expect to see the automaker showing high inventory numbers anytime soon.
TESLA MODEL 3
Gallery: Tesla Model 3 Inventory Claimed To Be Lowest Among U.S. Automakers
TESLA MODEL 3 PERFORMANCE