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$35K Tesla Model 3 Delayed Until Late 2018

$35K Tesla Model 3 Delayed Until Late 2018

At this point Tesla is ubiquitous with delay. The company’s mass-market Model 3 is facing delays, this time the $35,000 version of the car that made it famous in the first place.

According to a report from Car And DriverTesla is now saying the single motor, standard range Model 3 has been delayed until late 2018. Currently only the single motor, longer range version of the car is offered to consumer with a price tag that creeps into the $50,000 territory. A dual motor version of the car is also expected to launch at some point.

Tesla has not provided official updates on Model 3 production for awhile, but the last word from the company was that the battery module was a production pain-point for the company and causing delays. Unofficial reports have suggested the Model 3 is largely hand-built and has production issues that extend well beyond just one component.

During the company’s most recent earnings call CEO Elon Musk said the company was aiming to produce 2,500 Model 3’s per week by the end of March. Despite being a week shy of that deadline, Bloomberg’s Model 3 Tracker shows the company is only producing an average of 802 units per week currently, well shy of its goal. Given the backlog of Model 3 orders–most of which have laid down $1,000 deposits–it’s unclear how Tesla will ever satisfy demand for this car.

Once the standard Model 3 does arrive, it will do so with a 220-mile range to go with its $35,000 price tag. Those wishing for the least expensive version will also have to be mindful of the fact that Tesla’s EV federal tax credit is expected to begin regressing in late 2018. Once 200,000 Tesla’s have been sold, the government-supplied tax credit will regress from $7,500 to $3,750. Six months later it will regress again to $1,875 before finally regressing to zero six months later.

 

 

 





 

About Nick Saporito

AutoVerdict Senior Editor Nick Saporito began writing about cars at age 13. Nick ran a couple of automotive enthusiast sites for several years, before taking some time off to focus on his career and education. By day he's a marketing executive in the telecom world and by night he hangs out here at AV. You'll find him focusing on tech, design and the industry's future.
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  1. Andrew_L
    How many delays has it had so far?
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