Tesla Will ‘Probably’ Stop Taking New Orders for Its Most Popular Vehicles
Tesla is planning to temporarily halt the sale of new orders for its most popular vehicle configurations.
Elon Musk revealed on a remote interview that Tesla will “probably” stop taking orders for vehicles that won’t deliver within a set period of time.
“I am confident that we will be able to sell all the cars that we can make. Currently, the lead time for ordering a Tesla is ridiculously long. Our issue is not demand, it is production. Even before there were supply chain issues, Tesla demand exceeded production. Now, demand is exceeding production to a ridiculous degree.”
Tesla has been unable to meet unprecedented demand for virtually its entire vehicle lineup, with some configurations already facing estimated delivery windows of 2023.
In fact, a new order for a base Model X Long Range wouldn’t be delivered until some point between May 2023 and August 2023.
Even the base version of Model Y Long Range, Tesla’s most popular vehicle configuration, isn’t estimated for delivery for as long as an entire calendar year.
The story is similar for a base Model 3, which wouldn’t deliver until fall of this year.
Real Talk
Tesla should begin limiting new orders for its vehicles, possibly as soon as next week given Musk’s comments to the Financial Times.
To be fair, at some point taking orders for a vehicle that will deliver too far in the future presents too much of an opportunity for specifications and pricing to change between the time of order and delivery. It’s also simply not practical for most consumers to wait a year or more for a new vehicle.
There is already a substantial backlog of orders that will take Tesla several months to fulfill, not counting reservations for upcoming vehicles such as Cybertruck and Roadster.
As Tesla is already able to sell out of all of the vehicles that the automaker can produce even with three fully-operational factories, there’s no need to let delivery windows get too far out of hand. This comes as a second recent shutdown at Gigafactory Shanghai will serve to further reduce Tesla’s production output of Model 3 and Model Y.
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