Will end of tax credit slow Tesla’s Model 3?

There may be many more exterior and interior changes remaining to be done, which could be seen in the in the second part of the Model 3’s unveiling.

Tesla blames its own “hubris” in “adding far too much new technology to the Model X in version 1” for the delays, as well as insufficient vetting of suppliers, and its own inability to manufacture more parts in-house.

However, six months after the first deliveries of the Model X, the company has regained some of the momentum. The company blamed the miss on a shortage of parts for the Model X utility vehicle that went on sale in November. Analysts believe the company could face trouble filling all the initial orders, which are accompanied by a refundable $1,000 deposit, until 2020.

Tesla said it is addressing the root causes of the supply shortage as it readies for production of the Model 3, which the company unveiled Thursday in the Los Angeles area.

Matt Stover, who tracks the auto industry for Susquehanna International Group, said he doubts the people reserving a Model 3 in 2016 are thinking about a tax credit that is some two or three years away.

Tesla founder and chief executive Elon Musk say pre-orders of the firm’s much-anticipated Model 3 electric auto now amount to a total of 276,000. The company also is due to report first-quarter deliveries; Tesla forecast an increase of 60 percent for the quarter to about 16,000 vehicles.

For investors, the company’s inability to ramp Model X production will likely spark more skepticism toward the company’s upcoming Model 3 launch.

Unless Tesla can catch up in the coming quarters, it will have to deliver a daunting 35,000 vehicles in Q4.

The Chevrolet Bolt will be offering about 200miles of range while Tesla reported that the Tesla Model 3 will be offering about 215miles of range. The first challenge will be delivering vehicles on time. Even at the lower end of the guided range, the year over year jump from slightly more than 50,000 vehicle sales last year will be nothing short of impressive.

The Model 3 has a panoramic glass roof and an elongated hood, seats five adults and has the same large touchscreen dashboard as other Tesla models.