The Tesla Model 3 hype might actually be over. After getting beat up in the media over quality issues, production delays, and sub-par braking distances, it looks like things are getting tepid for the once glamorized Model 3. At the height of reservations, there were nearly half a million people in a holding pattern waiting for Musk to come through with an
This data isn't speculation. The data comes from Second Measure, a company that analyzes credit-card transactions, and it shows that cancellations have grown over the past two years. It looks like those bailing might be folks who wanted the more affordable 220-mile range version since Telsa has only built and delivered the pricier 310-mile range Model 3.
Tesla's earnings report stated that the "delays in production in general and delays in availability of certain planned options, particularly dual motor AWD and the smaller battery pack" can be attributed to the cancellations. This isn't good news because Tesla is burning through cash faster than they can build cars.
On the bright side, Tesla continues to take in more reservations as they lose others. The biggest number of bailers left in April when Musk reported that all-wheel drive and base, short-range Model 3s could be delayed by over half a year.
Their stock price has dropped over the past year, and Tesla remains embattled. The stock isn't recommended, and we can see why. Building cars and eschewing some of the traditional methods of manufacturing isn't exactly smart, and the numerous accidents and two deaths allegedly due to Telsa's Autopilot feature means the battle is still very very much uphill.