Elon Musk Disputes Analyst Claim Of Widespread Canceled Tesla Orders

Another news story questioning Tesla’s business model, another tweet from CEO Elon Musk disputing it. The billionaire magnate took to his widely followed Twitter account on Friday to shake off analyst accusations that huge swaths of Tesla customers were canceling their Model 3 orders due to long wait times for the electric car.

Rajvindra Gill of Needham & Co. claimed Thursday that more people were canceling orders than placing deposits on the widely sought after Tesla Model 3, per CNN. Gill specifically said that 24 percent of orders are canceled. If true, that would double the cancellation rate from a year ago.

Musk tweeted that those figures were “bs,” citing 5,000 Model 3 net orders in the past week alone. As he commonly does, Musk tweeted that in response to someone else’s post, meaning it was not a grand proclamation to all of his followers.

Tesla recently opened up Model 3 orders to the general public for the first time. They had previously been behind a reservation-only model. Buyers need to put down a $1,000 deposit and then $2,500 more to choose a version of the Model 3, according to CNN. After that, the wait for a Model 3 delivery can last several months.

Gill’s concerns spawned from concerns over Tesla’s ability to produce as many Model 3s as it needs. Production problems have dogged the electric car manufacturer for some time. However, as of earlier this month, Tesla claims it has hit its goal of producing 5,000 Model 3s per week. The company boosted its assembly process with the construction of an assembly tent outside its Fremont, California, plant.

Company shares had a couple of negative days this week due to Gill’s cancellation claims and other PR disasters. At least one noteworthy shareholder has suggested Musk spend less time on Twitter to focus on his job.