Elon Musk’s Tesla Model 3 Reportedly Suffers Weak Demand

Tesla Model 3, considered to be one of the most successful electric cars in the market because of its relative affordability, is poised to have a devastating first quarter sales report. This is despite the fact that the car offers some of the best specs and engine performance compared to other electric vehicles.

According to Seeking Alpha, deliveries of Tesla Model 3 sedans fell badly in January despite the supposed 450,000-strong pre-order book. The reason cited for the fall is failure from Tesla to deliver the vehicles in the U.S. as well as below than expected demand from buyers in Europe and even in China.

Tesla Model 3 is known for its dual motor all-wheel drive, handsome 20-in performance wheels and brakes, as well as its lower suspension, which is aimed at providing total control no matter what the weather condition it drives in. It is also lauded for impressive acceleration, with zero to 60 kph in just 3.3 seconds.

Tesla banked not only on the vehicle's fully electric features that make it energy efficient and environment-friendly, but also on the fact that there are over 12,000 Superchargers worldwide with six new stations opening almost every week, according to its website. Despite all these, there's a big gap between sales and manufacturing expectations in Tesla's major target markets.

The problem also stems from the fact that Elon Musk's vehicle brand seems to be focusing most of its efforts to supply the demand of Europe and China, and not focusing much on the U.S. market demand. And as the first batch of Tesla Model 3 arrives in Tianjin and Shanghai this week, some are expecting the sales to improve very soon.

Musk continues to reiterate that the demand for the Model 3 remains strong, and though the statement is true, there's still the underlying question on whether or not the company could still produce more, citing major layoffs in Tesla's delivery line.

Another problem in the offing is whether or not Tesla can deliver its Model 3 units on time, with fears of tariff hike still looming amid the U.S. and China trade war.