Tesla held their first quarter earnings call yesterday. The company reported revenue in the quarter that more than doubled and that they are on track on getting the Model 3 in production in July. But this was overshadowed by some comments made by CEO Elon Musk.
"We have seen some impact of Model S orders as a function of people being confused" that Model 3 is the upgrade to Model S, Musk said on a conference call.
Yes, it seems some of Tesla's prospective buyers believe the new Model 3 - the upcoming entry-level model - is the replacement for the Model S. This misconception has likely risen as Tesla has been promoting this vehicle since last July. Tesla's worry is that this misconception will draw people away from the Model S.
"We want to be super clear that Model 3 is not version three of our car. Model 3 is essentially a smaller, more affordable version of the Model S with fewer features," said Musk.
"The Model S will be better than Model 3. As it should be, as it's a more expensive car."
Sadly, customer deposits in the first quarter don't reflect that. Deposits on the Model S and X dropped 7 percent.