It seems Tesla is running onto a few bumps on the road. Recently, company founder and chief executive officer Elon Musk revealed that they would not be able to start production of Model 3 as planned. In fact, he has a set a deadline of July 1, 2017 to begin production, but then said that meeting the date would be “impossible.”
It seems that issues with supply are what’s causing Musk to believe that the deadline will be pushed back. During a recent conference call, Musk likened the challenge to meet the production date to a term paper deadline. There is a general belief that the supply chain for the Model 3 won’t be ready in time.
In a recent letter to customer and shareholders, the company has remarked that the Model introduction is the company’s “biggest consumer product launch ever.” Reservation numbers went beyond expectation. To date, there are more than 325,000 reservation on the Model 3, making for $14 billion in expected sales.
There may be some hiccups, but the company is still setting high goals. First, Tesla has revealed that because of the surge in demand for the Model 3, they have decided it best to advance its 500,000 total unit build plan to 2018. This will increase their production five-fold and help ensure that more customers will receive their own Model 3 soon.
Moreover, CNET reported that Musk is considering setting up factories in China and Europe to help with the delivery of the Model 3, but only if output in its Fremont plant has been maximized.
For the future of the Model 3, Musk is making a “rough guess” that his company will be able to produce between 100,000 to 200,000 models during the second half of next year. This is one of the reasons why he’s encouraging customers who haven’t reserved for a Model 3 to do so right away.
Said Musk, “If you place your order now, there’s a high probability you’ll actually receive your car in 2018.”
Also read: Tesla Model 3: Ludicrous Mode In The Works?