Those anxiously waiting for the lower-priced Tesla Model 3 will have to be patient.
As we reported in early February, preorders for the standard Tesla Model 3 were pushed to an early 2019 production date. Now, Tesla CEO Elon Musk has clarified on Twitter the reasoning behind the delay, saying that shipping the cheaper Model 3 right away would cause the American automaker to “lose money & die.” Musk says the company needs three to six months after it achieves 5,000 units per week of production before it can ship the standard Model 3 and live.
Given that Tesla still hasn’t reached 5,000 units a week, it’s unlikely the standard Model 3 will arrive before the end of the year, even if you’re more optimistic than Musk himself.
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Initial production of the Tesla Model 3 has gotten off to a rough start, with numerous delays and plant shutdowns to address automation issues. The company has a planned stoppage from May 26 to May 31 to address some of those issues as it aims to finally ramp up to 5,000 units per week.
For those holding onto their standard Model 3 preorders, they may want to take into account the possible cut-back in federal tax incentives if they’re choosing to wait. Tesla is expected to hit the 200,000 mark before the end of the year, so there’s a possibility the $7,500 federal tax credit will be halved by the time standard Model 3 deliveries begin.
With production, 1st you need achieve target rate & then smooth out flow to achieve target cost. Shipping min cost Model 3 right away wd cause Tesla to lose money & die. Need 3 to 6 months after 5k/wk to ship $35k Tesla & live.
— Elon Musk (@elonmusk) May 21, 2018
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