Yahoo Finance 
Tesla is pushing back Model S and Model X delivery dates — but that may actually be a good sign for the company (TSLA)
Tesla
Wait times for Tesla's Model S sedan and Model X SUV have increased.
If you order either vehicle today, they won't be delivered until June.
Tesla says the delay is due to a spike in demand rather than production difficulties.
Tesla's struggle to produce and deliver the Model 3 has been one of the company's biggest challenges during the past year. So far, the company has delivered around 3,000 of the estimated 400,000 Model 3s that have been pre-ordered.
But the company recently increased wait times for its Model S sedan and Model X SUV as well, according to Electrek. If you custom order either vehicle today, it won't be delivered until June, according to the company's website. Though if you already own a Tesla vehicle, the delivery time may decrease.
Tesla confirmed to Business Insider that the Model S and X delays are due to an increase in demand for the vehicles rather than production difficulties. That's surprising, as some thought the Model 3, Tesla's most affordable car to date, would cannibalize sales of the S and X.
Tesla's fourth-quarter earnings report indicated the opposite may have happened, claiming that the presence of the Model 3 in Tesla stores increased foot traffic, which may have played a role in increasing Model S and X sales. While that logic makes sense, the magnitude of the increase in demand is significant, especially given the fact that Tesla delivered over 100,000 cars — the vast majority of which were either a Model S or X — for the first time in its history in 2017.
So the Model S and X delays aren't likely to hurt Tesla for now. In fact, having to wait a few extra months may further the idea that Tesla's vehicles are exclusive luxury products.
But the Model 3 delays, which don't appear to be ending anytime soon, are another story.
NOW WATCH: A $445 billion fund manager explains what everyone gets wrong about the economy
See Also:
