When Tesla announced the official pricing for the made-in-China (MIC) Model Y last week, demand for the electric SUV soared. In the first 10 hours after the announcement, an estimated 100,000 orders were placed almost crashing the website.
When those orders were placed on Tesla’s Design Studio, the initial delivery estimates were indicating the first customers would receive their new cars this month.
Based on updates to Tesla’s website, it appears as though that strong early demand has continued. For any customers placing orders now, they can expect a wait of up to 3 months or more as the Design Studio is showing deliveries some time in the second quarter.
While this is definitely good news for Tesla, we will have to wait until we learn how many Model Y’s Tesla is able to manufacture to know how good it is. The automaker is targeting to produce 250,000 Model Y’s this year at Giga Shanghai, which works out to ~5,200 vehicles per week. With production only just beginning, they will need some time to ramp up to their full capacity.
No matter how many Tesla sells, they will be making a lot of money from every single one. According to a recent report, the gross margins on the MIC Model Y are as high as 30%, which is 3X higher than the industry average for a comparable vehicle.