Should You Believe the Hype?

The buzz surrounding the Tesla Model 3 was a huge success for the company and with over 300,000 people who have put down a deposit for this new affordable EV Tesla can see massive success leading into the future. No longer will they have to hedge all their bets on one model that was out of the price range for many, or on an SUV that was even more expensive, now they have a car that most of us can afford. The challenge with that may put Tesla in territory they aren’t used to and here are some reasons why you shouldn’t fall prey to the hype around the Model 3.

Delays – Do you remember when the Model X finally started being delivered to customers? It wasn’t until September of 2015 which was three and a half years after the vehicle was revealed to us. Originally the plan was to have the Model X on the market by early in 2014 and even with the delays only 208 were delivered in 2015 to customers who had reserved them. While the Model X was an SUV for a relatively small audience, the Model 3 is meant for the masses and won’t be met with appeasement or patience if this car is delayed beyond an announced delivery date.

Capacity for Production – Some of the delays and difficulty for the Model X came as a result of a lack of experience. Tesla has never mass produced their vehicles and the first challenge of adding a second vehicle to the production run made this even more difficult. Now that they seem to have a hold on how to produce two vehicles on their assembly lines they are going to add a third to the mix and one that will need to be able to reach a much larger customer base, at least they have nearly two years to get this done.

Others on the Market – By 2018, when the first batch of Model 3’s are expected to hit the streets there may be other vehicles on the market that will be better and more affordable. The current ordering process puts previous Tesla owners at the head of the line, which is a great way to ensure repeat customers, but those of us who have never owned a Tesla vehicle will be left behind and may not see a car during the first, second or third production runs of this new vehicle and may want to choose a different model by the time Tesla is ready to deliver.

More Batteries – Yes Tesla is going to produce their own batteries at the new Gigafactory; when it’s built. This plant isn’t expected to begin production on the batteries until 2017 and won’t reach full capacity, which is planned for 500,000 vehicles per year, until 2020. Let’s do the math, the Model 3 is to launch in 2018, the batteries won’t be produced until 2017 and full capacity won’t be reached until 2020. With over 300,000 on the reservation list it seems those near the bottom of the current list won’t see their cars until 2020, at least.

Reliability – The Model S has now been around long enough for us to know if it’s a reliable build or not and many owners are finding they have more problems than the average car in the same class. If Tesla can’t get it right with a Model S, which is a high priced luxury vehicle how are they going to make things work right with a car that costs half as much? This is something to think about before you put your $1,000 down and get on the list, although that is a small amount to reserve your slot on the list and you can cancel any time you want, so it might be worth the risk.