Tesla Model 3 News, Updates: Elon Musk Shoots Down Reports on Cancelled Orders, Claims Demand Remains Strong

Tesla Model 3 cars are expected to be out on the market by July 28. Tesla moved the release date three months earlier as buyers were already waiting for too long.

Now, just days before the Tesla Model 3 vehicles are scheduled to be distributed, it was rumored that many of the orders were already canceled for various reasons, including the long waiting time. Tesla CEO Elon Musk stepped in to deny these claims.

According to CNBC, Musk revealed that his company recently received an additional 7,000 orders for their electric cars. He emphasized that the orders were placed just last week and his decision to disclose this information could have been his way to dismiss the reports that the demand for Tesla Model 3 is declining and many customers have backed out.

Furthermore, the Tesla and SpaceX CEO also denied that people were withdrawing their orders through a tweet. A user criticized the report where Tesla reps called the cancellation news as false. Apparently, Musk could not keep it in anymore so he replied, “Dunno where this bs is coming from. Who knows about the future, but last week we had over 2000 S/X and 5000 Model 3 *new* net orders.”

It was Wall Street analyst Rajvindra Gill of Needham and Company that first claimed that the Tesla Model 3 had more cancellations than new orders being placed for the electric car.

“Based on our checks, refunds are outpacing deposits as cancellations accelerate,” Fox News quoted Gill as saying. “In August '17, TSLA cited a refund rate of 12 percent. Almost a year later, we believe it has doubled and outpaced deposits.”

Elon Musk contradicted this research report and stated that reservations for their Tesla Model 3 are still up at 420,000 at the end of the second quarter. The CEO added that they have already delivered around 28,300 units.

In any case, apart from the waiting time, it was said that other reasons why buyers are calling off their orders or reservations include the expiration of a $7,500 tax credit on the cars that were promised to buyers and the fact that the base model priced at $35,000 is not yet available on the market.

Finally, it is not a secret that the production of Tesla Model 3 has been delayed and this was why Elon Musk raised $1.2 billion in order to launch the Model 3 on time, but it still got delayed. Tesla recently sped up the production to 3,500 units per week so they can shorten the waiting time.