US electric vehicle maker Tesla is reportedly delaying some of its deliveries to 2020 in the US as part of its end of the year rush to deliver all of its inventories, which would cost buyers $1875. Every quarter, Tesla has to deliver as many vehicles as possible to present better financial results, reports Electrek. However, this quarter is significant for US buyers considering that they have to take delivery by the end of 2019 to avail the $1, 875 tax credit for EVs.
Last month, Tesla notified customers that they have to place their orders to receive the delivery by the end of 2019. Tesla CEO Elon Musk also disclosed that it was crucial for the company to deliver all cars in its inventory by the end of the year. Some Tesla buyers in the US revealed to Electrek that the company informed them that it is no longer able to deliver vehicles by the end of the year.
The only choice available to Tesla buyers is to take the delivery early in 2020 but without access to the $1,875 federal tax credit. Musk earlier said that the company's campaign is intense, and some regions had already run out of inventory. The current situation is both good and bad news.
For the US electric vehicle maker, it means that it is running out of cars, delivering its inventories, and getting closer to reaching its target, for the US, at least. However, for customers, this is a real issue, especially for those going after the incentive. Tesla is also currently having logistical issues in matching demand with its available inventory.
But, this could be easily fixed with more production facilities where higher demands are located. It will shorten the transit time and will make the company more flexible. However, it will only be possible if both Gigafactory 3 in China and Gigafactory 4 in Germany are at volume production. Meanwhile, CNBC reports that Tesla will deliver lesser vehicles compared to the low end of its guidance for the year, which will affect its stock.
Tesla is poised to deliver between 95,000 and 101,000 electric vehicles for the fourth quarter, the report says. This means, the company's delivery for the year is approximately 356,000, which is below the 360,000 to 400,000 range Tesla has released as guidance. The prediction comes as the first Tesla Made in China Model 3 is being delivered.
Tesla's Gigafactory 3 in China has started production and delivery less than a year following its groundbreaking. Earlier reports claimed that Tesla is planning to slash the price of Tesla Made in China Model 3 vehicles by 20 percent.
