Tesla Model 3 U.S. sales soft as automaker invades Europe and China.
The expected result of shifting to overseas is seen in our estimates, but don't think for a second that demand for the Model 3 has fallen. Yesterday's $35,000 base Model 3 announcement will shift the demand wave way upwards in the coming months.
In fact, the introduction of the $35,000 Model 3 will disrupt all markets in the coming months. Additionally, we believe the cheapest Model 3 will begin to steal would-be sales from vehicles like the Chevy Bolt, Nissan LEAF e-Plus, Hyundai Kona Electric and Kia Niro EV.
So, while the focus now may be on expected declining U.S. sales, the future for the Model 3 looks exceptionally bright. In fact, it's never looked brighter than right now.
Tesla has stated that virtually all current production of the Model 3 would be focused on Europe and China, which is reflected in our figures. Aside from an extremely limited number of new builds, Tesla was mostly left with just inventory Model 3s for the U.S. market.