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Consumer Reports Slaps the Tesla Model 3

(This article originally appeared on Breitbart.com)

Time is running out, Mr. Mush.

“According to the Tesla Owner’s Forum, the $7,500 federal credit will fall to $3,750 by June 30, 2018; $1,750 by December 31, 2018; and $0.00 by June 30, 2019.”federal

The first Consumer Reports review of a Tesla Model 3 found the all-electric sedan for the middle class has great handling, but that the ride quality is very poor.
By putting a $1,000 deposit down in April 1, 2016, Consumer Reports (CR) was able to receive one of the first Tesla Model 3 commercial deliveries in mid-February 2018. Only deluxe vehicles with $23,000 in options were available, but CR was able to test the vehicle to determine the performance of a high-volume $35,000 standard unit.

One does not simply mass-produce automobiles.

CR’s testers reported they were “impressed by our car’s glued-to-the-road handling, with steering that is quick and precise, much like a well-tuned sports car.” But regarding ride quality, CR found that the “car is overly stiff, struggling to absorb bumps with the dignity expected from a luxury car. There’s also considerable wind noise at highway speeds.”

The party is over

The main reason Tesla has been able to lose money for 15 years and not go bankrupt is receipt of $1.6 billion in U.S. federal and state electric vehicle tax credits on the sale of 160,000 luxury cars it produced and sold in the U.S. at a $90,000 average price. But according to the Tesla Owner’s Forum, the $7,500 federal credit will fall to $3,750 by June 30, 2018; $1,750 by December 31, 2018; and $0.00 by June 30, 2019.

Tesla just reported that the company lost $665 million in the last three months of 2017, and about $1.9 billion for the year. About 80 percent of those losses were due to the ramp-up of the Model 3, which is a year behind schedule. More concerning, Tesla is predicted to lose $855 million in the first three months of 2018, and over $2 billion for the year.

Tesla is financially betting the viability of the company on the ability to quickly produce and sell at least 125,000 Model 3 as all-electric mid-sized luxury cars per year at an un-subsidized starting price of $35,000. (The problem is that the first runs are only of the fully-loaded models at $55,000).
Tesla does not offer monthly sales figures, but the “insideevs.com” market intelligence estimates that Tesla last month sold 2,485 Model 3 units; 1,125 Model S sedans; and 875 Model X SUVs. But with 1,882,848 U.S. personal vehicle sales in February, Tesla held a 0.2 percent market share with just 4,482 units.

Several years ago, Tesla was the only electric-vehicle on U.S. roads. But there are now 38 models to choose from, and most car manufacturers plan to produce several electric-vehicle models by 2019.

Tesla’s Model S lost its position as the top-selling electric vehicle in its California home market to General Motors’ Chevrolet Bolt. According to the California New Car Dealers Association’s Auto Outlook, GM sold or leased 13,487 Bolts versus 11,813 Tesla Model S sedans. The San Francisco Chronicle blamed the loss of leadership on the fact that Tesla’s Model S starts at $74,500 — over twice Bolt’s $36,620 starting price.

Let’s not even get into Solar City. Or flamethrowers. It is too much to handle all at once.

 

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4 comments

  1. sarcrilege

    Another cash burning marxist project facilitated by community organizer Obama going down in flames. Regardless, I bet Musk could successfully sell snake oil to Martians if he could get there w/ SpaceX.

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  2. juice

    Good to hear the party is still over, Garth. Tell that to the capital markets. Perhaps they will listen to you some day.

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  3. tonka

    There’s a huge block of 2019 disaster puts out at the 50 strike. So lots of people share your sentiment.

    They still have one more big trick up their sleeve. It’s only a matter of time until Musk bails himself out again and folds Space X into all of this. It’s a marketing and government funding dream. And it kinda makes sense. They can call the conglomerate “To the sun and back.”

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  4. Raul3

    In case you missed Breitbart.com’s terrible reporting on a topic they wholly misunderstand, here it is on iBankCoin

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