American electric carmaker Tesla Motor Corporation may have shot itself in the foot with its recent strategy to cushion the long wait of prospective buyers for the Tesla Model 3.
While it has openly announced that it intends to deliver the Tesla Model 3 in the second half of next year, the company recently initiated a short-term lease plan for its other electric vehicles.
Interestingly, the short-term that Tesla shall be offering is for a period of two years so if it starts now, it would end up around the second half of 2018.
Tesla’s offer gives prospective buyers of the Model 3 an opportunity to drive a Model S sedan for as low as $593 a month for 24 months. They can also have the same lease arrangement for the Model X SUV for as low as $730 a month for two years as well.
The two-year lease plan requires a big amount of downpayment for the more expensive and luxurious Model X, notes the Extreme Tech.
While the Model S sedan has already been launched by Tesla a couple of years back, it would apparently be releasing the 2016 edition of the electric vehicle late next month. The Model X has just been released a few months ago.
Reports have it that the offers are only meant to perk up the company’s third quarter 2016 sales which is why they are only good up to September 12.
A safety net
Some critics, however, are of the opinion that the strategy is a safety net by Tesla Motors in the event that it fails to deliver the Model 3 on time in the second half of next year. So those who shall be biting the offer, particularly those who have placed reservations for the Model 3, would not feel the long wait even if the release date of the sedan got delayed for some reasons.
The development, launch and forthcoming deliveries of the Tesla Model 3 are actually part of the company’s Master Plan, which its founder and CEO Elon Musk first outlined in 2006 to turn the company into one of the key players in the US auto industry.
Back then, Musk mapped out a three-pronged strategy to carve its niche in the American automotive business. The first one was the Tesla Roadster, which was a low-volume, high-priced electric sports car, whose profits were used to bankroll the production of the second car, the Model S, described as a mid-volume, mid-priced family saloon.
Then the third is the Model 3, which is a high-volume and reasonably-priced electric vehicle.
Tesla Motors is looking at delivering the first batch of Model 3 at the end of next year although the factory would not be able to reach full production capacity until 2020.
Based on initial projections, Tesla Motors is looking to produce 200,000 Model 3 by next year and around 500,000 in 2018, which according to critics would be difficult targets to meet even if production work is double given the limited capacity of the factory.
Pre-order worth over $10 billion already
The Tesla Model 3 is one of the most highly anticipated vehicles both in the US and the international auto market today. As a matter of fact, based on its pre-orders alone, Tesla Motor Corporation is looking at more than $10 billion revenues to its coffers already.
No wonder Musk made the lofty production target for the Model 3 for next year and 2018. Many industry analysts have said that the carmaker’s timetable for a new model was too tight.
Despite the pessimism, Musk seems elated defying expectations and analysis of industry experts by saying that it would be an auspicious time to prove them wrong by hitting the company’s self-imposed deadline, notes Digital Trends.