Tesla Reportedly Has Over 3,000 Unsold Model 3s

AlphaAtlas

AlphaAtlas

[H]ard|Gawd
Staff member
Joined
Mar 3, 2018
Messages
1,713
A common assumption about Tesla is that demand for their vehicles is high, and that the company is basically limited by their manufacturing capacity. The past few months have reportedly been particularly busy, as a $7500 U.S. tax credit for electric vehicles ended at the start of 2019. But a recent report by Electrik claims that Tesla had over 3,000 unsold Model 3s close to the end of the year, and "sources familiar with the matter" don't think there was a way for Tesla to sell them all yesterday.

When put into perspective, it's really not that bad since it's just about half a week of Model 3 production for Tesla. That said, there was this impression that demand would significantly outpace production in the US this quarter due to the start of the tax credit phase-out. It looks like it wasn't entirely the case. Tesla might be seeing peak demand for the current Model 3 configurations in the US. To be clear, I'm not worried about demand for the Model 3. With European and Asian markets still untapped, Tesla is going to be able to sell many more of those Model 3's. But in the US, I think most potential buyers are now waiting for the cheaper version of the Model 3. Even with the $3,750 difference in the tax credit, the Mid-Range Model 3 is still about $5,000 more expensive than what many reservation holders expected to pay for the vehicle.
 
Well, for starters, they market the price as being ~$35,000 but then when you actually spec out a car that number is for the stripped out base model and they attach things like "gas savings" to the price so the price is closer to $45,000 out of pocket. If you want a nice vehicle with AWD, you are paying $65,000+ and then it's just a smallish sedan with a big price tag.

Honestly, I'm surprised they don't have more of these sitting around waiting for people to buy them with such poor value.
 
Last edited:
Mohonri said:
Aren't they producing about 5k vehicles per week? This sounds like much ado about nothing.
Click to expand...

It's not really. It is merely that demand was expected to outstrip Tesla's ability to supply cars. And as a car, the model 3 is on the high side price wise, even with the tax break, once you spec it out comparable to similar sized and optioned ice sedans.
 
No doubt our modern millennial-driven media expected the Acme Cartoon version of this event, with huge lines and fist-fights at Tesla dealerships as the clocks clicked down, with rows of all-night-truckers, car-carriers full of freshly minted Model3's going down the block as people clamored for their tax credit........reality was if you wanted this car, you already ordered or took delivery of it. If you've been in an accident or suddenly find yourself in need of a car, different story of course but honestly....they probably did expect the drama.

As other wise-ones above have stated, they were left with the kind of backlog they should have *every week*, so this isn't an event, this is "happening next week too". Not too much excess inventory = efficient process.
 
HeadRusch said:
No doubt our modern millennial-driven media expected the Acme Cartoon version of this event, with huge lines and fist-fights at Tesla dealerships as the clocks clicked down, with rows of all-night-truckers, car-carriers full of freshly minted Model3's going down the block as people clamored for their tax credit........reality was if you wanted this car, you already ordered or took delivery of it. If you've been in an accident or suddenly find yourself in need of a car, different story of course but honestly....they probably did expect the drama.

As other wise-ones above have stated, they were left with the kind of backlog they should have *every week*, so this isn't an event, this is "happening next week too". Not too much excess inventory = efficient process.
Click to expand...

Yup. "Drama's or it didn't happen."
 
Most car makers would love to have this problem. I think the industry standard is around 60 days supply. Quite possible these cars represent the almost inevitable combination of colors, features and price that just won't sell. "I like white but want red hubcaps and blue interior, max battery range, etc." The type of stuff that winds up in the year end "as is where is" type sales.
 
There just far too expensive, there's a few round here and they all look like they've been in an accident, none of the panels line up, the front bonnet edge lies over the top of the bumper like it's hit a wall and pushed the bumper back... I'm utterly confused how they sell them at all, there a vauxhall (Opel for the USA) level brand as far as I'm concerned.. if I had to put a figure on a Tesla it'd be 20k brand new...
 
I had to buy a new vehicle this year - one was in a car crash and was "totaled" by the insurance company. I needed a vehicle that was affordable (for me, this is $25000 or less - I could afford more, but I'd rather have a nicer retirement later in life than a nicer car now). I need something that works where I live - I'm in the midwest, there are very few charging stations. This means fossil fuels where I live. I also need something with range as we take road trips and summer vacation at times. I have kids, so we also need room for kids stuff in the back (plus the kids :) )
I ended up with a Subaru Forester for under $24000 with a little haggling. It's the base model - but has more gadgets than I would have paid for if they were extra.
I had someone in Las Vegas pick me up in a Tesla (Uber) - I'll admit it was a nice ride. I thought it was cool. Just not something practical for me and out of my price range I'm willing to pay for.
 
kirbyrj said:
Well, for starters, they market the price as being ~$35,000 but then when you actually spec out a car that number is for the stripped out base model and they attach things like "gas savings" to the price indicating so the price is closer to $45,000. If you want a nice vehicle with AWD, you are paying $65,000+ and then it's just a smallish sedan with a big price tag.

Honestly, I'm surprised they don't have more of these sitting around waiting for people to buy them with such poor value.
Click to expand...

I think we all pretty much assume the stripped down model when any car manufacturer quotes a "starting at" price. That being said, I'm surprised they are able to list "gas savings" in the price though.
 
Mohonri said:
Aren't they producing about 5k vehicles per week? This sounds like much ado about nothing.
Click to expand...
It's twisted clickbait. This just sounds like they got production rolling to the point they are meeting demand. But everyone loves to hate on anything Musk.
 
  • Like
Reactions: DPI
like this
It's too bad that they are doing away with the tax credits. I'm going to need to replace faithful old BMW at some point.. going strong since 2003.

I can't see paying Tesla prices without the tax break. I'd imagine that a lot of people are in that mindset.

steakman1971 said:
I could afford more, but I'd rather have a nicer retirement later in life than a nicer car now).
Click to expand...

It sorta sucks when you grow up and realize this. I'm in this same bucket too, really wanted an M4.. but i'd rather retire sooner/better than throw it into a car at this point. I mean it's a good thing, but sucks out a good bit of excitement. It's a lot easier to get up and make the donuts every day when you have that immediate carrot vs that long term carrot.
 
Sorry, but the Model 3 is currently priced about $20,000 more than what people are wanting to pay.

And there's just not enough millionaire's to purchase the Model S.

(seriously, buy a house, or buy a car.... people actually have that decision to make?)
 
kirbyrj said:
Well, for starters, they market the price as being ~$35,000 but then when you actually spec out a car that number is for the stripped out base model and they attach things like "gas savings" to the price so the price is closer to $45,000 out of pocket. If you want a nice vehicle with AWD, you are paying $65,000+ and then it's just a smallish sedan with a big price tag.

Honestly, I'm surprised they don't have more of these sitting around waiting for people to buy them with such poor value.
Click to expand...

As long as the qualify for carpool stickers here in California, they will still sell.
Rich people don't like sitting in traffic like the rest of us, and $65,000 is a small price to pay to be able to take the carpool lane to/from the office with only one person in the car.

(Most the old stickers expired at the end of the year, so only way to get a new sticker is with a new car.)
 
I posted months ago they were getting close to the end of their backlog.

My friend has had his worked on 4 times now in less than a year.
 
Wow so seeing lots of cars at car dealerships means manufacturers are doing bad? Who knew :ROFLMAO:
 
haste. said:
It's twisted clickbait. This just sounds like they got production rolling to the point they are meeting demand. But everyone loves to hate on anything Musk.
Click to expand...

The Musk thing goes both ways. Either you hate everything about him, or he can do no wrong. Tesla haters will say this is a huge deal (it isn’t really that much inventory if they have a 5000 unit production target per week), much in the same way Tesla fans will be totally cool with Elon tweeting BS that’s either impossible or otherwise will never happen. No different than any other fanboy/hater situation.
 
brentsg said:
It's too bad that they are doing away with the tax credits. I'm going to need to replace faithful old BMW at some point.. going strong since 2003.

I can't see paying Tesla prices without the tax break. I'd imagine that a lot of people are in that mindset.



It sorta sucks when you grow up and realize this. I'm in this same bucket too, really wanted an M4.. but i'd rather retire sooner/better than throw it into a car at this point. I mean it's a good thing, but sucks out a good bit of excitement. It's a lot easier to get up and make the donuts every day when you have that immediate carrot vs that long term carrot.
Click to expand...

pretty much why i drive beater cars/trucks/suv's that are 15-20 years old even though i could afford a really nice car. as long as it gets me from point A to point B and i double what i paid for the vehicle in wages then i don't give a crap what happens to it after that. rather retire young then try to look cool driving around in a vette or beamer.

now if you were able to lease the model 3 then maybe i'd consider getting one but that's about the only way i'd even consider it with how much battery technology is changing it's just not worth straight up buying them unless you have money to throw away.
 
Last edited:
sirmonkey1985 said:
.. then i don't give a crap what happens to it after that. rather retire young then try to look cool driving around in a vette or beamer.
Click to expand...

I mean there's a lot more to it than trying to look cool. Some vehicles are just straight up more fun to drive than others.
 
I have to admit though...in an age where we should want the uptake of EVs, getting rid of the tax breaks on them will just slow it down
The teslas are just too pricey
hell I can't even afford a LEAF
 
TheOne&OnlyZeke said:
I have to admit though...in an age where we should want the uptake of EVs, getting rid of the tax breaks on them will just slow it down
The teslas are just too pricey
hell I can't even afford a LEAF
Click to expand...
I think the idea behind the tax credit for EVs is to only encourage adoption enough to get the industry over the "hump" of developing them and making them economic and attractive, rather than driving the entire market towards adoption.
 
Paul_Johnson said:
That actually sounds kind of like low inventory to me.
Click to expand...

I was gonna say the same, seems to be running very smoothly in my opinion.


Would love one for my daily driver to be honest but just not an opportune time right now.
 
I live in the city their mfg plant is at and its true just about every single empty commercial building near their plant they have rented the parking lots of them to store new cars hundreds of brand new cars parked in lots of empty buildings everyday it's pretty insane esp when you consider how massive their parking lots are around the plant for temporary storage, one thing i do notice though is they use freight trains less to move the inventory out than back when it was NUMMI, most of the Teslas seem to go out on big rigs on a daily basis.
 
sirmonkey1985 said:
pretty much why i drive beater cars/trucks/suv's that are 15-20 years old even though i could afford a really nice car. as long as it gets me from point A to point B and i double what i paid for the vehicle in wages then i don't give a crap what happens to it after that. rather retire young then try to look cool driving around in a vette or beamer.
Click to expand...

More importantly all these newer cars are hooked up with insecure telemetry and electronic systems that are completely laughable from a design and reliability standpoint.

Also my older cars are a fraction to license and insure, something that a lot of people also overlook in the whole car ownership equation. And just because they are old they don't have to be beaters. Both of my cars look practically brand new even though they are a '97 and '02. You just have to take care of them. Storing them in the garage instead of a lot of useless shit like many Americans tend to do also makes a huge difference on their longevity.
 
Why is this even news? As much as I dislike Tesla, I'd imagine they aren't making each Model 3 "to order" so yeah, there will probably be a few hundred of any given configuration (battery, paint color, etc.) made where one has been already sold. It wouldn't be feasible to only make only one car with the specific spec that some schmuck ordered. So it really shouldn't be a shocker that there are a few left-overs (for reference Tesla sold something like 25,000 Model 3s in the month of December.)

***EDIT***
Just did the math, 3000 cars is just over 1 weeks worth of "surplus" cars if you look at the total number of Model 3s sold in 2018. If you focus on December alone it's down to 3.7 days worth of Model 3 sales. Not really something that's all that noteworthy.
 
Last edited:
capt_cope said:
Why is this even news? As much as I dislike Tesla, I'd imagine they aren't making each Model 3 "to order" so yeah, there will probably be a few hundred of any given configuration (battery, paint color, etc.) made where one has been already sold. It wouldn't be feasible to only make only one car with the specific spec that some schmuck ordered. So it really shouldn't be a shocker that there are a few left-overs (for reference Tesla sold something like 25,000 Model 3s in the month of December.)

***EDIT***
Just did the math, 3000 cars is just over 1 weeks worth of "surplus" cars if you look at the total number of Model 3s sold in 2018. If you focus on December alone it's down to 3.7 days worth of Model 3 sales. Not really something that's all that noteworthy.
Click to expand...

Tesla hate is about as tendy as Apple hate. Everyone wants to see them fail simply because they are succeeding
 
aokman said:
Tesla hate is about as tendy as Apple hate. Everyone wants to see them fail simply because they are succeeding
Click to expand...
Easy there bucaroo. "Succeeding" is a pretty strong word for over-hyping over-priced cars. Elon Musk is not some sort of savior, he's a marketing man who's great at hype but not even in the same sport (let alone ball-game) as the likes of Steve Jobs. I still think Tesla will fail in the next decade, but mostly because Tesla made stupid choices - they've set themselves up as competitors to Kia, Ford, Toyota, etc. while charging Audi/BMW/Mercedes prices without any clear explanation as to how they intend to get to Ford, Kia, Toyota, etc. prices. And let's not forget that they're aggressively anti-consumer to boot (but don't worry, now they'll sell spare parts to salvage title owners at their discretion...)

In summary, Succeeding is a bit strong. Surviving at the moment might be a better way to put it.

Also I won't shed a single tear when they do fail, but having 3000 extra cars isn't going to be what does them in.
 
capt_cope said:
Easy there bucaroo. "Succeeding" is a pretty strong word for over-hyping over-priced cars. Elon Musk is not some sort of savior, he's a marketing man who's great at hype but not even in the same sport (let alone ball-game) as the likes of Steve Jobs. I still think Tesla will fail in the next decade, but mostly because Tesla made stupid choices - they've set themselves up as competitors to Kia, Ford, Toyota, etc. while charging Audi/BMW/Mercedes prices without any clear explanation as to how they intend to get to Ford, Kia, Toyota, etc. prices. And let's not forget that they're aggressively anti-consumer to boot (but don't worry, now they'll sell spare parts to salvage title owners at their discretion...)

In summary, Succeeding is a bit strong. Surviving at the moment might be a better way to put it.

Also I won't shed a single tear when they do fail, but having 3000 extra cars isn't going to be what does them in.
Click to expand...

Such a load of BS... are you aware that all Tesla’s patents are open source and free to use by the auto industry. They are being used by VW also...

Elon has even said that if another company makes a better product then Tesla deserves to fail. The whole point of Tesla is to spur on the next generation of electric cars which is already showing results with upcoming models from Audi etc.

You are the perfect example of a blatant hater with no real grounding, they charge high prices because you cant build a performance EV cheaply. That comes with time and experience, hence the model 3’s release at a more midrange price...

As for repairing your own car, Rich Rebuilds has already proven why you shouldnt be allowed to do it when the fkwit almost burnt his mates workshop to the ground blatantly bypassing all Tesla safety measures. His own repairs have managed to destroy various parts on his model S also proving he is an incompetent jackass but wants to start an EV “shop”.

No consumer should be allowed to play around with 400v DC drive systems and 95kWh battery packs, it is instant death if you do something wrong and there are too many idiots out there who think they know everything.

They will sell every model, hell we are still waiting for them in Australia and the wait list is nuts.
 
Dead Parrot said:
Most car makers would love to have this problem. I think the industry standard is around 60 days supply. Quite possible these cars represent the almost inevitable combination of colors, features and price that just won't sell. "I like white but want red hubcaps and blue interior, max battery range, etc." The type of stuff that winds up in the year end "as is where is" type sales.
Click to expand...

The only weird thing I'd see here is that Telsa doesn't really have dealers with stock right? With normal car lots you can shift the cars to dealers so when someone goes to buy a car they can find something close enough to what they want in stock. If they can't(happened to me when I bought my jeep a year or so ago because no one had ones with half doors anywhere near by) then you special order which yea takes like 2 months or so(mine took something like that to come in).

If you go to order a telsa is their system smart enough to say hey you wanted this, we have this which is say 90 percent the same in stock, do you want to buy it instead and have it later this week? You go to a say ford dealership and say I want this truck with these options. If they don't have it they can check other dealers and say we can order you that or you can get this which is close. I guess that would determine how bad of a problem this is but even still that doesn't sound like that many unsold cars.
 
aokman said:
Such a load of BS... are you aware that all Tesla’s patents are open source and free to use by the auto industry. They are being used by VW also...

Elon has even said that if another company makes a better product then Tesla deserves to fail. The whole point of Tesla is to spur on the next generation of electric cars which is already showing results with upcoming models from Audi etc.

You are the perfect example of a blatant hater with no real grounding, they charge high prices because you cant build a performance EV cheaply. That comes with time and experience, hence the model 3’s release at a more midrange price...

As for repairing your own car, Rich Rebuilds has already proven why you shouldnt be allowed to do it when the fkwit almost burnt his mates workshop to the ground blatantly bypassing all Tesla safety measures. His own repairs have managed to destroy various parts on his model S also proving he is an incompetent jackass but wants to start an EV “shop”.

No consumer should be allowed to play around with 400v DC drive systems and 95kWh battery packs, it is instant death if you do something wrong and there are too many idiots out there who think they know everything.

They will sell every model, hell we are still waiting for them in Australia and the wait list is nuts.
Click to expand...

dude, never ever just take Musk's public words for granted. His genius is his capability to sell (either an idea to get funding, or to sell a good image for his products or to sell his image as some kind of tech savant ).

and it's easy to say i give out free patents but you just try to request research and development tech for their battery and road guidance systems or even ride handling and aero ( among others) then they will tell you they are licensed from a 3rd party or has 3rd party licensing involved (yea....officially, but we all know how it works. ), so no you cannot get them

but hey, if you want to use our patent for the shape of the mold for the charging port of our propriety charger go ahead...
 
Last edited:
for my situation Tesla has far too many shortcomings to be a viable alternative.
 
YeuEmMaiMai said:
for my situation Tesla has far too many shortcomings to be a viable alternative.
Click to expand...
Maybe that's you.

My typical week? I could do on a single tesla charge. My round trip to work is ~13 miles. (Granted, that's 60-90 minutes of drive time.)

Sometimes I drive for work, up to 60 miles round trip, but that's relatively rare now.

Weekends, I'll do between 0 and 150 miles of driving.

So, on an average week if I drove, I'd probably put around 200-250 miles on a car.
 
3,000 unsold Model 3's doesn't sound bad...

The Model 3's base price is appealing at $35k, but as soon as I started customizing a few things I was staring at a price tag of $60k (almost double the base price). At that kind of price the Model 3 isn't enough "car" for me personally.
 
You must log in or register to reply here.
Back
Top