It’s hard to know how to feel about the fact that Tesla has announced that anyone in the US that wants a Model 3 can now order one without reservation. There have been nearly 400,000 people on the reservation list for the past couple of years and the company has only recently reached a production level of 5,000 cars in a single week without ever coming close to the 10,000 per week that was the original stated goal. By the same token, the fact that a person who wants the Model 3 simply has to place the $2,500 reservation price in order to have one makes it easy to shop and buy this car.
The Reservation List Argument for the Model 3
Here’s the concern; shouldn’t Tesla build and fill the orders for all customers that are currently on the reservation list before opening up the sales around the country? The immediate buzz around the Tesla Model 3 when Elon Musk showed off the concept shell caused a large number of people to place $1,000 to reserve their place on the list for this car. Now, Tesla is allowing customers who never considered being on this list to simply place a reserve of $2,500 down in order to receive one of the vehicles that’s available now.
Right now, Tesla is only offering the Model 3 Long Range, Model 3 dual-motor AWD, and the Model 3 Performance. This means the Model 3 Short Range, which was the one that’s supposed to make it possible for the Tesla brand to be one that everyone could afford to drive. This version of the car is slated to start at a price of $35,000 and it still hasn’t begun to enter production and isn’t expected to for another six to nine months.
On the Other Hand
The flip side to this argument has to do with the money. These higher ranges and more powerful models of the Model 3, which are available now, cost more and allow the company to experience a greater revenue stream when sold. Has Tesla built more of these longer range models than what the reservation list calls for? That’s possible; many of those who put their $1,000 down for this car are likely waiting to purchase the Model 3 Short Range in order to have the car at the price they wanted to purchase instead of nearly double the price for one of the longer range models.
For those who choose to put $2,500 down for one of these higher priced Model 3 cars, they will be able to take delivery in two to four-month time, rather than waiting the additional length of time to have the lower-priced model that could be delayed again.
There are certainly two sides to this argument and it seems that Tesla should be obligated to provide the vehicles to those on the reservation list that have already placed a good faith payment of $1,000 to hold their place in line, but it seems that $1,000 doesn’t get you much these days.
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