(Photos: Unplugged Performance)
Good Question! After filtering through some sources we may have gotten an answer for you..
While the Tesla Model 3 deliveries were promised to start in October of 2017. That quickly changed and now Tesla CEO Elon Musk admits the Model 3 is in “production hell.” He also refused to comment on how many Model 3’s were produced in October. What we do know is that Tesla’s main goal to produce 5,000 Model 3’s per week in December will not be met.
So far, the number of confirmed Model 3’s stands at roughly 440 (not including any built in October). Of those 440 Model 3’s the majority went straight to company employees, friends of employees, and other insiders. Only a handful (or less) of the Model 3’s trickled down to regular customers. It looks like production is having a bottleneck effect.
What is the reason for slowed production? There were problems with the production line and automation. They had to re-write the software, fabricate, and install new components to get everything running smoothly again. Also, the process of creating battery components is not fully automated and very labor intensive.
The Short Answer: Ramping-up of production will not start until March of 2018.
The Problem: Tesla has currently sold about 140,000 cars and once they hit the 200,000 mark the current $7,500 U.S. Federal tax credit will decrease during the subsequent quarters. Essentially, every 2 quarters the credit will be cut in half. Therefore, while Model S and Model X owners can take advantage of the U.S. Federal tax credit while it is still at the full $7,500, by the time Model 3 owners get their chance that number could be $3,750 or $1,875.
But that’s not all that is threatening the $7,500 tax credit, in recent news House Republicans have also released their tax plan for 2018 that eliminated the $7,500 tax credit for electric vehicles. This complete elimination could potentially kill the electric vehicle industry.
It will be interesting to see what is to come. We will be monitoring the news closely as time goes on and updating you accordingly. Leave your thoughts about this in the comment section below!