Tesla drives Model 3 deliveries in the second half of 2022

Demand for electric cars in Australia is hitting new highs in 2022, and no brand is – or should be – reaping as many benefits from this as the world’s best-selling electric car company Tesla.

But, as many customers are discovering, ordering a new electric car is one thing. Handing it over is something else.

Tesla has already warned new customers that they face a 12-month wait for their new orders, and now it has told Australian customers who have placed orders in the past six months that their cars won’t be delivered until the second half of 2022.

“Due to the current situation in Shangai, our factory is currently operating at low production capacity which forces cars to be produced for our market,” Tesla told a Model 3 customer (who ordered their cars in February) by email.

“We expect production to return to full volume soon and our market (will receive) delivery in the second half of 2022.” At least six other customers waiting for their Model 3 shipments to arrive reported receiving the same or similar messages and phone revisions.

Exactly when will Tesla deliveries begin again, and what is causing the delay? Here is what we know.

China in March shut down production of Tesla

Shanghai, a city with more people than Australia, is at the heart of the delay for Tesla. The mega-city was shut down in March 2022 after initially announcing a 75% production staff cut in March 2022.

Source: Karlope

In April 2022, Tesla produced a total of 10,757 cars from its Shanghai Gigafactory after restarting its factory on April 19.

For the month of April, Tesla was only able to produce less than half of its daily production rate before the shutdowns began. This means that in April, Tesla produced 4233 Model 3s. Most were left-hand drive electric cars sent to Europe.

Production is starting to increase, but Tesla suppliers are also facing similar challenges with this prolonged shutdown. It could take the entire month of May to get back to producing more than 2,000 cars a day.

For Australian customers, that’s not great news, but Tesla has advised customers that they will do what they can to get the cars here by the second half of the year.

The Driven understands that some of these customers have originally placed their orders since November 2021. They have now waited over 6 months for the new Tesla Model 3.

It is very likely that the Australian Tesla Model Y launch has been delayed

As production at Australia’s Tesla supply plant in Shanghai is slowly increasing, long wait times for new Tesla Model 3 customers are here for most of 2022.

The Tesla Model Y is more popular, especially in the Chinese Tesla market as evidenced by recent reports where the Tesla Model Y has topped luxury SUV sales in 2022 so far.

Source: Karlope

For the Australian market, it is very likely that the launch of the Tesla Model Y will be delayed even more. This is disappointing news for many Australians wanting to buy their first SUV, or upgrade their current car, who may have to wait until 2023 for Model Y shipments.

This is to be expected given the huge domestic demand, production and shipping challenges that Tesla faces.

What’s next for domestic Tesla customers

Tesla notified several customers on Friday, May 13th that their vehicles were likely to be delivered in the second half of 2022.

This is not ideal but many circumstances are beyond the control of Tesla and their Chinese team. We hope the situation in China improves and that Tesla can quickly change that while working closely with its suppliers and local government authorities.

That’s a slight bump in the uptake of electric cars in Australia after Tesla delivered more than 4,000 vehicles in the first three months of 2022. As things improve over the coming months, Tesla will do all it can to top over 7,000 deliveries to Australian customers.

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