Tesla Pushing Midnight Sales to Clear Backlog of 3K Model 3s
Tesla Pushing Midnight Sales to Clear Backlog of 3K Model 3s
Tesla still has over 3,000 Model 3's left in inventory in the US
31 December, 2018, 23:28
If Tesla were to pay the $3,750 difference between credit amounts on 3,000 cars, it would cost the company more than $11 million. "This is on a first to purchase basis and will close as soon as we have enough participants. this is the last time the offer will be made", Musk said.
Despite it all, Tesla has met key deadlines in ramping up production of its critical Model 3, reporting strong earnings in its most recent quarter.
In October, Tesla said it had made a decision to accelerate its manufacturing timeline in China "in order to significantly increase the affordability of Model 3". And it is also releasing cars for purchase that other buyers have ordered if the original buyers can't take delivery by today.
Customers taking delivery of Tesla vehicles after Jan 1, 2020 are not eligible for any federal tax credits, unless the Trump administration extends the program, something that seems increasingly unlikely. California remains the biggest market for electric vehicles in the U.S.
Earlier this year, Tesla said orders placed by October 15 would be eligible for the full tax credit of $7,500 and that customers would receive their cars by the end of the year.
In November, Tesla joined forces with General Motors and Nissan in an effort to persuade Congress to extend the EV tax credit.
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"If Tesla committed delivery & customer made good faith efforts to receive before year end, Tesla will cover the tax credit difference", Musk wrote in a response to a Twitter user who apparently ordered their auto before December.
Tesla's legal department also has been going through shakeups since Mr Musk's run-in with the SEC. The deal was clinched after Musk traveled to Shanghai in July just after the first round of Trump's anti-China tariffs took effect.
Tesla's Model 3 has been plagued by numerous production delays prompting a litany of complaints from long-suffering customers still waiting for their orders to be filled.
On Sunday, auto blog Electrek reported that there were more than 3,300 Model 3 vehicles sitting in Tesla's U.S. inventory, according to an unnamed source familiar with the matter.
The report, citing sources, said while the automaker is expected to deliver some vehicles on the last day of the year, it is not possible for Tesla to go through the whole inventory.
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