Tesla could freeze orders due to huge demand it can’t meet

The huge demand for electric cars is pushing even a fast-growth-focused company like Tesla to its limits. Therefore, there could be an order freeze.

High subsidies, rising fuel prices and a growing general interest in electric cars are straining the production capacity of electric car manufacturers.

The global shortage of important components, as well as logistical problems due to the pandemic and the war in Ukraine, make the situation worse. This even pushes a manufacturer like Tesla to its limits, focused on rapid growth in the mass market. The waiting lists are already very long.

Elon Musk, CEO of Tesla, has warned that the world’s biggest electric car maker may temporarily stop accepting orders because delivery times are too long.

Demand is exceeding production at an insane rate. Tesla will likely limit or stop accepting orders beyond a certain timeframe as some of the delivery dates are over a year away.

Elon Musk

To ease the situation, Tesla continued to raise prices for its cheapest electric car. The Model 3 currently costs at least 56,370 euros; in 2021 it was still available for over €10,000 less.

However, demand remains high; in March, the Model 3 was again the best-selling car of any powertrain in Europe. The Model Y mid-size SUV is also in high demand, securing third place overall in Europe in March.

For the base version of the Model 3 and the next longer-range variant in the series, Tesla currently gives the period “January 2023 – March 2023” for expected delivery in Europe.

The Model 3, sportier and more expensive, will be delivered from “between September and November 2022”. The Model Y will also be available sooner in this country, as it also rolls off the production line at the new German factory near Berlin from March: “August to October 2022” is when it should be with new new customers. In the case of the high-end Model S and Model X cars, Tesla is no longer giving delivery dates after a long delay in Europe.

Tesla’s delivery times are relatively short compared to traditional manufacturers. For some popular models, it takes up to a year or more. For this reason, some companies, such as Renault and Dacia, have already stopped ordering electric cars, which Musk has also put on the line. Europe’s largest automaker, Volkswagen, can hardly deliver more vehicles this year, he has therefore partially reduced the available versions of certain models.

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