Reservations for the Model 3 wont reopen until 2018 at the earliest

Elon Musk’s Twitter account has been a go-to source for breaking news recently, and the Tesla CEO once again took less than 140 characters to announce (somewhat indirectly) that the Model 3’s first year of production has sold out. The company’s founder revealed the enlightening information while responding to an article shared by Fortune Magazine saying that new rounds of reservations for the Model 3 aren’t expected to be reopened for another two years.

The news marks the first time that Musk or anybody from Tesla has commented about the Model 3’s production status since May when the automaker confirmed that it had received more than 370,000 reservations for the entry-level model. Tesla has been quiet on that front since, but with Musk’s tweet, we at least get a good idea on the timetable for reservations on the car to re-open.

Tesla is still targeting a mid-2017 date to begin production of the car with a goal of getting the first wave of models delivered later in the year. At its current rate, the automaker is still in the process of ramping up its production capacity to accommodate all the Model 3 orders that have arrived. It’s only expected to deliver around 80,000 units in 2016, which is a big improvement from the 50,000 units it delivered in 2015. That number is expected to go up again in 2017 onwards as the company gears up to start production of the Model 3. The goal, according to Fortune, is to have manufacturing capabilities to produce around 500,000 models, many of which are likely going to be the Model 3.

In the meantime, those who have made the $1,000 refundable deposit on the car will have to continue to wait for their names to be called and those looking to join the long queue for the Model 3 will have to wait a little while longer to get in line.

Continue after the jump to read the full story.

Tesla needs to ramp up its production really fast

This has always been one of Tesla’s biggest challenges and it’s about to get more vexing for the automaker once production for the Model 3 begins. The automaker has said it’s ramping up its production capabilities, and while actual details on that front are still being sorted out, it’s incumbent upon the company to get to a conclusion in that regard in order to meet the timetable it has set for itself.

If improvements are made to increase production volume, Tesla could blow past the estimates that analysts at Cairn Energy Research Advisors pinned down when it said that Tesla could ship 76,860 Model 3 units by the end of 2018, including 12,200 units in 2017 and 64,660 units in 2018. The analysts also said that by the end of 2019, delivered Model 3 units could reach 212,646 units, including 135,786 units in 2019 alone.

Like most people, I’d like to see Tesla succeed in getting to where it needs to go from a production capacity. The clock is ticking on the automaker though and if it wants to live up to its promise, increasing its production capacity should be one of its top priorities in short-term future.

Read our full review on the 2018 Tesla Model 3 here.

Source: Twitter - Elon Musk

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