tesla model 3 first deliveries v29t
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Sam Charlwood14 Jun 2018
NEWS

Aussie Tesla Model 3 customers 'happy to wait'

Tesla Australia says long delays haven’t led to a significant downturn in reservations for its most affordable model

Tesla says Australian pre-orders for the new Model 3 remain unchanged despite ongoing production setbacks for the all-new mid-size electric sedan.

At a media function in Sydney today, Tesla insisted the Model 3 would touch down in Australia in “mid-2019” – nearly three and a half years after the original pre-order process commenced.

However, even that arrival estimate could be optimistic, given Tesla Motors owner Elon Musk recently said right-hand drive Model 3 production will commence “probably mid next year”.

Tesla first opened the books for Model 3 ‘registrations’ in March 2016, which led to considerable overnight queues from Sydney and Melbourne enthusiasts to pay a $1500 deposit for a place in the production cycle.

Stakeholders today said the wait hasn’t been detrimental to Model 3 orders, with most prospective buyers choosing to wait or upgrade to the larger Model S sedan.

“There’s been fluctuations in reservations, both up and down, but nothing of great significance,” said a Tesla Australia spokesperson.

“We don’t have people coming in here complaining about the delays. We’ve been very transparent around the timing for manufacturing.”

Tesla first opened the books for Model 3 'registrations' in March 2016

Tesla never specified Australian production timing at the original unveiling of the Model 3, only promising a global release of “late 2017”.

Despite that, stakeholders say most prospective Aussie buyers of the Model 3 remain undeterred.

“I think people are keen to get their hands on the vehicle but also willing to wait as well,” the spokesperson said.

“At the moment they’ve got a reservation and that will transition to an order once vehicles are set for production.

“We didn’t give a firm delivery date for Australia. We gave a global production timeline and there’s plenty of data out there on where we were and where we’ve got to from a manufacturing point of view.

“I think most reports suggest we’re three to six months behind from the original timeline in terms of scale to where we are now. We didn’t give a specific time to those Australian reservation holders on when they will get their vehicle.”

Tesla originally forecast it would build around 10,000 Model 3s a month by December 2017, when it made just over 2000. Production has increased since then but the build rate is still below 5000 per week – a target that has now been delayed until July.

Nor has Tesla set Australian pricing for the Model 3, which is now available in the US, citing exchange rates.

Original speculation pointed to a circa-$50,000 price tag in Australia. Musk Tweeted in July 2017 that Tesla will charge “$US price in $AUD plus import duties and sales tax”.

“We try to keep pricing parity across all of our products,” said Tesla Australia today. “Elon Musk has tweeted that pricing will be parity plus delivery and duties locally, and that was very specific from Australia. He outlined that.”

At its launch in mid-2017, the Model 3 was announced in two versions: an entry-level version priced at $US35,000 ($A46,500) and a Long Range model costing $US44,000 ($A58,500).

The base model has a US EPA range of 354km and a claimed 0-60mph (97km/h) time of 5.6 seconds, while the pricier Long Range version has a 500km range and a 5.1sec 0-60mph claim.

Since then the Model 3 has attracted more than 450,000 orders globally and Tesla has announced all-wheel drive and high-performance versions of the Model 3.

Priced at $US78,000 ($A103,000), the latter is claimed to be quicker and better handling than the BMW M3, but so far Tesla has only produced the Long Range model.

Musk recently confirmed the company’s dire financial situation via Twitter, where he revealed why Tesla isn’t building the entry-level Tesla Model 3 yet.

“Shipping min cost Model 3 right away wd cause Tesla to lose money & die,” he said in a Tweet.

“Need 3 to 6 months after 5k/wk to ship $35k Tesla & live.”

This week Tesla Motors cut nine per cent of its workforce, amounting to thousands of workers, in an effort to reduce costs and increase profit, as part of a restructure announced by Musk last month.

Musk reportedly said in an email to staff that the cuts were "almost entirely made from salaried population and no production associates were included", adding that those roles "made sense in the past" but are now "difficult to justify".

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Written bySam Charlwood
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