Nearly A Quarter Of Tesla Model 3 Reservations Cancelled In U.S.

Tesla may have the most fiercely loyal fan base in the automotive world but even this can’t help the company in the face of ongoing Model 3 production delays.

When the order books for the entry-level model opened in April 2016, Tesla received hundreds of thousands of deposits within a matter of weeks. However, data published by Second Measure asserts that as of the end of April, 23 per cent of all Model 3 deposits in the United States had been recalled.

Figures reveal that 18 per cent of all Model 3 refunds happened in April, the same month when Elon Musk said the sedan would be delayed six to nine months. Of course, not all the cancellations would be because of the delays as the financial positions of many would-be customers could have also changed in the past 24 months.

Nevertheless, the data reveals that at least some customers are growing tired of waiting.

Tesla still has over 400,000 orders to fulfill.

Unsurprisingly, Tesla claims that the figures published by Second Measure don’t match its internal data but failed to mention how many orders had been cancelled. Before Musk started his ongoing crusade against the media, he said that Tesla had secured 455,000 net reservations out of 518,000 gross reservations as of August 2017, indicating roughly 63,000 cancellations.

Last year, Tesla was actively trying to “anti-sell” the Model 3 and convince customers to opt for a more expensive Model S or Model X.

Recode reports that the Californian carmaker admitted that delays had indeed impacted cancellations during its most recent earnings release.

“Delays in production in general and delays in availability of certain planned options, particularly dual motor AWD and the smaller battery pack [have resulted in cancellations],” the company said.

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  • Alfa Giulia QV

    That’s still over 400k reservations but waiting around until Tesla start making enough Model 3s without the constant delays is a real test of patience. If I had a reservation, I would have cancelled it and walked away last year.

  • Knotmyrealname

    I like the picture. Is it supposed to represent a broken down car? Actually it’s just someone placing luggage in the ‘frunk’

  • TheBelltower

    Sure. You had people hoping to buy an EV for the price of a well optioned Camry. When these cheap ba$tards realize that wan’t going to happen anytime soon, they had to move on and get something they could afford. Elon definitely overpromised here. But I also believe that he underestimated the demand for a $50-60k “entry level” EV. Clearly this provides much greater profit margins, and will help cashflow until they can ramp-up production.

  • Spyder Hole Fantome

    With all of Tesla’s delays and dodgy price announcement manipulation, coupled with new alternative brand EV models being announced almost weekly, I’m sure we’ll see this cancellation percentage jump to much higher level each quarter going forward.

    • Stephen G

      Disagree. Tesla carries the cache of being first. Many folks just care about the association with such a product. For instance: Toyota Prius & Chrysler minivans, sales of these vehicle skyrocketed even though competition made a superior product. Crowds are not going to run to Jaguar to buy an I-Pace or whoever is next (?) to produce an electric.

  • Richard Alexander

    Take a screenshot of this post and save it.
    You will be freaked out ant how accurately the scenario described below plays out:

    The Fed is shrinking the balance sheet. Billions and billions of dollars are disappearing from US liquidity every week. As liquidity slowly (if you can call billions of dollars every week slow) the investing community will just carry on as if nothing is happening, that no companies ever have to turn a profit ever again. And then all of a sudden, there will be a panic as companies (and consumers) find there is not enough cheap capital out there to keep this charade going. And just as defaults and rates spike, conpanies like Tesla which have had a free ride during the QE era will implode. All of those high paying jobs at these money losing companies will disappear….and the Model 3 will become a symbol of the hubris of this free money era.

  • Richard Alexander

    Become? Yes…in 2014.

  • TheBelltower

    My Tesla has been nearly problem free, as has been my neighbor’s Model S. Far more precisely built than my Range Rover or BMW. And in a different league entirely than the Infiniti loaner I had for a month after a fender bender. People love to talk $h!t about stuff they don’t know about.

  • Six_Tymes

    even if it dropped to 300 thousand, its still decent. On the flip side this also gives them time to address/fix a few cliches that are easy to handle before they go out. SO, this news is not all the negative really, there is an up side to it.

  • Six_Tymes
  • TheBelltower

    Fine if that’s your position. I will say that, based on your screen name, I don’t believe you. You’re last name could very well be “Penzoil,” “Koch” or “Lutz” since you seem to care a bit too much about a brand you say is absolutely awful. I used to believe all the negative hype about Tesla until last year when I drove a friend’s Model X. Everyone I know with Teslas were previous owners of German sedans and SUVs. Like it or not, more and more people in my parking garage are buying Teslas.

  • JBsC6

    Simply put anti tesla headline show get attention and that’s what pays the journalis bills…

    • Status

      It’s not anti-Tesla if it’s criticism, and if you can’t take criticism without resorting to assumptions that it’s a coordinated effort for fiscal gain, then it’s a personal weakness of your perception.

  • Meanwhile Tesla Model 3 is the best selling mid-size premium sedan in the USA in May.

    • Alfa Giulia QV

      Sales data?

  • Stephen G

    That is a broad and non specific accusation.

  • Alfa Giulia QV


  • Blanka Li

    There’s a bunch of Model 3’s siting behind a fence next to the Burbank airport. So if you’re tired of waiting . . .

  • Auf Wiedersehen

    So, what I want to know is, if they have gotten production up to 3500 cars a day, why are they not delivering them? And if they are, they must be letting them go one at a time because they are few and far between. Plus, what about the parking lots FULL of them in CA? Why are these not being delivered? If they are cars built but not up to QC standards and therefore not deliverable, this seems like a crazy way to do it. If the recent reports of each one costing $28k to make, there is no wonder they are hemorrhaging cash. It’s kind of like pumping something out of a tube and wasting 25% just to get the air out of the tube. All I know is, I’m not sure I would want one of these early cars.

  • EyalN

    i think they passed away by now

  • onlineNetizen

    i wonder how many more are going to cancel. returning that many must have eating its cash reserves

  • Plutonium

    two years ago in Tesla headquarters board meeting…
    – We need more money. Ideas?
    – Let’s promise low cost model and ask people for deposits. Like $1000.
    – perfect. We’ll tell the public that they can buy that vehicle. Say $36k next year.
    – But it will actually cost $60k, and we don’t have faculties to build extra model.
    – We’ll worry about how to build it later. We need capital…

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