Elon Musk said Tesla may stop taking orders on some of its popular electric car models due to long delivery schedules.
There is currently a rush in demand for electric vehicles as the technology gains traction — naturally, becoming more prevalent and, in the short term, more directly through increased gas prices.
For Tesla, we previously reported that this significantly increased the rate of demand in many regions of the United States. In March, that resulted in several Tesla models being sold through 2023 in the United States. This is despite the numerous price increases throughout Tesla’s entire lineup over the past two years.
Now Tesla is considering stopping taking orders on some models. CEO Elon Musk said during an interview at the FT Future of Cars conference:
Demand now exceeds production to an absurd degree. It is actually possible that we will limit or stop receiving orders for anything beyond a certain time period because some time (for the delivery of new orders) is more than a year away.”
The comment comes as Tesla has updated several delivery schedules for some of its most popular vehicles in the US. New order for the base Model Y now shows a delivery schedule from February 2023 to May 2023. More expensive versions of the car, such as the Model Y Performance, get a much faster delivery schedule from July to September 2022.
Over the past year, Tesla has also started offering faster delivery schedules by adding some options on certain models. For example, the base Model Y (Long Range AWD) gets a faster delivery schedule from November 2022 to February 2023 if you add the larger 20-inch wheels, which cost an extra $2,000.
The Model 3 is still popular too, but delivery timelines are more reasonable than the Model Y. All Model 3 trims can be delivered by the end of the year in the US.
If Tesla stops taking orders on some of its vehicle trims, the base Model Y will likely be the first to go.
Now you may be thinking: What is the advantage of not receiving new orders? Don’t you just want as much backlog as possible?
Yes, but delivery schedules are getting long enough that people are now buying a car that will likely be different by the time they get it. Tesla is always updating its cars, and if you get your car a year after you order it, it will likely have many new features and changes.
Also, the price is likely to change. Tesla is now offering the new Model Y to people who ordered it last year for $5,000 to $10,000 cheaper than buying one now with a new order.
Elon Musk recently explained the difficulties Tesla is having in adjusting the prices of the vehicles it offers six to twelve months from now, especially with rising material costs.
So while Tesla wants to have a large backlog of orders, there comes a point where it becomes very difficult to manage.
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