Tesla Model S/X Sales This Year Have Fallen by 400 units Compared From the First Two Months of Last Year. But, this Does Not Mean Tesla is Losing Sales. It Means Customers Are Waiting to Get their Hands on the Cheaper Model 3.

Tesla: The Moment Of Truth Is Approaching

Tesla ( TSLA) is an extraordinarily innovative company that has achieved amazing results in several sectors in a relatively short time frame. Let's face it, if it weren't for Tesla, EVs would still be limited to the likes of the Leaf and the Prius.

From article, ([of an] apparent slowdown in Model S/X sales this quarter. Tesla said that it aims to deliver roughly 100,000 Model S/X vehicles this year, about the same as last year. The company also claimed that while demand remained strong for these vehicles, production capacity was constrained due to increased resources being diverted to the Model 3 vehicle.

According to EVObsession.com, Tesla sold about 8,400 Model S and Model X vehicles in the U.S. in the first two months of this year. This is lower than last year's figure of 8,800 Model S/X vehicles for the same time frame. Since about 60% of Tesla Model S/X sales come from the U.S., we can assume the company sold around 15,000 Model S/X vehicles in total in the first two months. By adding around 50% to account for March sales, this would give us approximately 22,500 Model S/X units for Q1. This is lower than last year's 25,000 units and will make it very difficult for Tesla to achieve its target of 100,000 Model S/X vehicles this year.

The Model 3 Rampup is likely one of the most important production efforts ever. It is certainly the most crucial manufacturing process in Tesla's history as a company. A true EV, affordable, capable, and stylish, the likes of which have never been seen before. However, the rollout process has been anything but smooth, plagued by various problems and numerous delays.

Going by the company's own original estimates, Tesla should be cranking out Model 3s at around 10,000 units per week by now. the drastically revised estimates call for about 2,500 units by now.

Tesla was originally shooting for 500,000 Model 3s this year, but even with a constructive rampup from here, the company will likely only produce about 100,000.)

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Me, "I call this apples and oranges. If we consider that Model S/X sell 100,000 vehicles and the Model 3 produces even half that that, this is still 50,000 more electric cars on the road, then if no Model 3 was introduced.
 No one said producing the Model 3 would be easy. But if you look at the start up production numbers of Model S and X it took some time for them to be produced in great numbers too. Analysts really need to sit back and stop bad mouthing Tesla."