Demand for the Tesla Model 3: Any reason to worry?
The question being asked these days is should we be concerned about Elon’s difficulty in meeting his production goals for the Model 3. More importantly will his production problems reduce demand for the Model 3. With reported reservations north of 400,00 for the car made since March 31st of 2016 ,you have to believe that demand is high.
The reasons for not worrying about demand for the Model 3.
There is no cause for worry about demand. Tesla has 455,00 reservations still according to the company. Spend time on any other blog or Facebook page devoted to Bolts, Leafs and other electric cars and you will find plenty of people who have gotten a refund to buy a Bolt or a Leaf. But with 455,000 still wanting a Model 3, I wouldn’t worry about demand.
Word of mouth marketing
Tesla is the king of word of mouth marketing (See the EV Advertising Scorecard from Torque News). Customers purchasing Teslas are selling their friends and others on buying one. The Model 3 will benefit from this but Tesla needs to get more of them on the road. We need more owners to, “word of mouth market”, them.
Model 3's availability overseas has not begun yet.
All of Tesla's Model 3 deliveries have happened only in the U.S. And only to buyers who reserved their car early. When deliveries begin overseas the demand is of course going to rise dramatically.
Simply put, demand for the Model X and Model S has never been a problem.
Price does in fact matter. People want this car and they are willing to wait. The 35,000 dollar entry level model won’t be released until late 2018.
Competition will help the demand
There is rising demand for electric cars. The Chevrolet Bolt hit the market before the Model 3. While the Bolt has been initially selling well, the Model 3 is surpassing the Bolt in deliveries.
With so much competition in the burgeoning electric car market, more entries will benefit all buyers. This is the moment we will all look back on as the year that electric cars grabbed our attention and showed us they are a great alternative to and ICE powered vehicle. As for Tesla and the Model 3, if Elon can fix his production issues it will be full speed ahead with no looking back.