When Tesla first unveiled the Model 3 and made the car available for pre-order, the amount of interest in the car was so high that even Tesla executives were caught off guard. Just a few weeks after its introduction, the cumulative number of Model 3 reservations was said to be somewhere in the 400,000 range. Since then, there hasn’t been much indication that interest in the Model 3 has died down, with Elon Musk a few months ago noting that reservations are still increasing each and every week.
Still, it’s no secret that some folks who put down a $1,000 refundable deposit for their Model 3 reservation have changed their minds. In light of this, an analyst recently claimed that cancellations for the Model 3 have increased to the point where they are outpacing actual orders. Tesla CEO Elon Musk, of course, can’t help himself when it comes to disinformation and he quickly took to Twitter to squash the aforementioned claim.
“Dunno where this bs is coming from,” Musk said. “Who knows about the future, but last week we had over 2000 S/X and 5000 Model 3 *new* net orders.”
While only Tesla at this point has the hard data on net cancellations and orders, it seems odd that anyone would question overall demand in the Model 3. If anything, Tesla’s main issue with the Model 3 has everything to do with supply, not demand. Sure, there’s no question that many individuals have opted to have their deposit refunded, but it’s quite a leap to claim that cancellations are now eclipsing bonafide orders.
As to Tesla’s ability to churn out Model 3 units in sufficient volume, the company made good on its promise to manufacture 5,000 units/week by the end of June. Looking ahead, the looming question is whether or not Tesla can a) sustain this production rate and b) increase production to 6,000 units/week as the company promised a few weeks ago.
With Tesla’s earnings report just around the corner, we should have a much idea as to how the ongoing ramp-up in Model 3 production is coming along.