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Tesla's Model 3: What You Need to Know

Tesla's Model 3 might be the hot topic of conversation, but do you know about the vehicle's downfalls?

Upon the Model 3’s launch, demand for Elon Musk’s new vehicle turned out to be quadruple Tesla’s initial predictions. When doors initially opened for consumers to place their orders to purchase the car, lines with extensive wait times formed outside of Tesla stores - a trend not met by any other auto brand. The Model 3’s outrageous demand coupled with its affordable price tag has rocketed the car’s visibility, causing order numbers to continue to climb.

While the conversations surrounding the vehicle have garnered attention that appears optimistic for a green future, there are aspects of the Model 3 that remain in question:

1) Limited Production and Long Wait Times

With the influx of orders, Elon Musk announced via Twitter that he would need to revise and expand plans for production in order to meet shipping targets. If Tesla is unable to do so, it is likely that wait times will be pushed back.

At this point, the company has received over 325,000 orders, a number which is only continuing to grow. Cairn Energy Research Advisors are predicting that Tesla will only be able to ship 212,646 Model 3 cars by the end of 2019 (that’s assuming 100% conversion). This means that many will not receive their vehicles until (at least) three years down the road from now.

2) The Final Price

While the Model 3 is listed at a modest $35,000 USD, it has been claimed that the vehicle’s additional features will likely drive the price up to an average of $42,000 USD per vehicle, and up to a whopping $60,000 USD when you include all of the bells and whistles, not counting insurance. When you apply today’s exchange rate to the equation, that takes what was a $41,000 CAD price tag to nearly $77,000 CAD.

3) Other Companies are Doing the Same Thing

There are plenty of other electric vehicles that meet, or surpass, the utility of the Model 3, often at a lower cost. Examples include the Chevy Bolt, Toyota Prius, or the Kia Soul EV. All of these models remain within the same price range as the Model 3 while delivering similar functionality, but without an extensive wait time.

Tesla has effectively marketed the Model 3 as the first affordable electric vehicle that’s cool. However, whether the wait and price outweigh the benefits of purchasing another model of electric vehicle is a topic that remains to be explored.

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