Tesla Vehicle Deliveries are Delayed Up to 14 Weeks as the Company's Stock Price Falls 30% From its Record High in January
【Summary】On top of Tesla’s falling stock price, deliveries of the Model 3 sedan and Model Y crossover have been delayed up to 14 weeks, according to Tesla’s updated vehicle order webpage, which now lists the updated delivery timelines for Tesla’s more popular models. Customers looking to purchase a Model 3 or Model Y can expect delivery times somewhere between 2 to 14 weeks.
Tesla's position as the world's most valuable car company has eroding somewhat in 2021, as the company's stock fell to the lowest levels of the since the start of the new year. Just two months ago on Jan 8, Tesla stock price was $880.00. It has since fallen to $563.00 as the end of the trading session on Monday.
Now on top of Tesla's falling stock price deliveries of the Model 3 sedan and Model Y crossover and Model S have been delayed up to 14 weeks, according to Tesla's updated vehicle order webpage, which now lists the updated delivery timelines for Tesla's models.
Tesla currently operates without an official communications team, so the automaker could not be reached for comment about why all of Tesla's electric vehicles are facing extended delays.
According to Tesla's vehicle order page, customers looking to purchase a Model 3, including the Long-Range and Performance versions, can expect delivery times between 2 to 14 weeks, meaning that customers might not receive their new Tesla vehicles until mid-June at the latest, depending how they configure it.
Customers looking to purchase a Model Y crossover are looking at slightly less delivery times of 2 to 11 weeks. However deliveries of Tesla's flagship Model S are estimated to be 10-14 weeks, so essentially it won't be available until May at the earliest.
The Model X SUV also won't be available until May or June.
In addition to the longer wait times for the Model 3 and Model Y, Tesla also removed the lowest priced Standard Range Model Y from its website at the end of February, just over a month after its introduction. It was priced at $43,190 with an advertised range of 244 miles.
Before removing the Standard Range Model Y from its vehicle order website, Tesla dropped the electric crossover's price tag by $2,000 to $41,190 in early February. The company did not make any public statement as to why the Standard Range Model Y is no longer available to purchase.
Although Tesla has not given an official reason for the delivery delays, the recent chip shortages may be to blame. Automakers around the world have been forced to scale back production or even temporarily shut down factories amid the ongoing chip shortages that have hit automakers around the world.
Two weeks ago Tesla suspended operations at its California assembly factory for several days.
In a tweet on Feb 25, Tesla Chief Executive Elon Musk announced that the company's Fremont plant was shut down for two days due to "parts shortages" without elaborating. Tesla said in February that it might face a temporary impact from a global semiconductor shortage.
Musk's tweet about the shutdown resulted in Tesla's stock price falling by 8% to $682.22 on Feb 25. It's now down another $119.22 and below $565 for the first time since the end of Nov 2020.
However other automakers are also dealing with chip shortages. In mid January, Ford Motor Co, Subaru Corp and Toyota Motor Corp said they would curtail vehicle production in the United States. At the start of the new year, Ford shut down its Louisville, Kentucky plant for one week due to the chip shortages.
Tesla is one of the most shorted stocks on Wall Street and fluctuations and corrections in the company's share price are common. However, after the company's stock price fell to $563 on Monday its raises some red flags about Tesla's short-term outlook and just how much the chip shortages might be affecting its vehicle production, or if there are other factors at play.
As a company that only produces fully-electric vehicles, Tesla vehicles may require a greater number of electronics than a similar internal combustion engine vehicle.
But Tesla's falling stock price shouldn't alarm long-term investors too much. Technology and other growth stocks have fallen across the board since Feb. 12, after the Nasdaq closed at its latest record high.
However it's worth noting that the decline in Tesla's share price during the last 30 days has been much deeper than Wall Street's other heavyweights at roughly 29%. Other S&P companies such as Apple Inc., are down 13% since Feb 12. While the overall NASDAQ is down 9%.
But even after losing about one third of its value, Tesla's market cap still tops $540 billion. The company's lower stock price is likely to attract investors looking for Tesla shares at a 30% discount from their record highs.
Originally hailing from New Jersey, Eric is a automotive & technology reporter covering the high-tech industry here in Silicon Valley. He has over 15 years of automotive experience and a bachelors degree in computer science. These skills, combined with technical writing and news reporting, allows him to fully understand and identify new and innovative technologies in the auto industry and beyond. He has worked at Uber on self-driving cars and as a technical writer, helping people to understand and work with technology.
Luxury-Electric Automaker Lucid Motors to Launch its Much-Anticipated IPO Next Week
Luxury Brand Mercedes-Benz to Go All-Electric by 2030
Uber Freight Aims to Build the World’s Most Comprehensive Logistics Network with its $2.25 Billion Acquisition of Transplace
Ford & Argo AI to Deploy Self-driving Vehicles on Lyft’s Ride-Hailing Network This Year
Intel’s Autonomous Driving Arm Mobileye is Testing its Self-driving Technology in New York City
The Upcoming Lucid Air Sedan Will Ride on High-Tech Pirelli Tires Designed for EVs
Solar-Electric Car Startup Sono Motors to Use a Connected Vehicle Software Platform From Silicon Valley-based Sibros
Ford Motor Co is Recalling Nearly 775,000 Ford Explorer Models a Second Time for Rear Suspension Problem
- Ford Motor Co Announces ‘Ford Ion Park’ to Accelerate the Development & Manufacturing of Advanced EV Batteries
- Silicon Valley Company DeepMap Announces ‘RoadMemory’ a Scalable Mapping Service for Autonomous Vehicles
- Ford Motor Co. Goes for Function Over Fashion With its Electric F-150 Lightning Pickup
- Porsche Looking to Develop Synthetic Fuel to Make ICE Cars as Efficient as EVs
- China’s Tesla Challenger Xpeng Opens Orders for the New P5 Sedan, the Company's Third EV
- Amazon Testing Rivian Electric Delivery Vans in San Francisco
- China’s Tesla Challengers NIO Inc. and XPeng Both Report Record Electric Vehicle Deliveries in June
- Ford Discontinues Diesel Engine For F-150 Pickup
- Tesla Chief Elon Musk Says 'Red Tape' is Causing Delays in Completing its Berlin Gigafactory
- Here’s What We Know About Toyota's New bZ4X Concept Electric SUV