Tesla Motors Inc highly ambitious plan to deliver 500,000 cars by 2018 has suffered another blow because of setback in deliveries. The firm hopes to deliver between 80,000 and 90,000 cars this year but it is unlikely that the firm would meet the target. Once again, the firm fell short of delivery expectations for the quarter.
Tesla’s stock suffered last week in the wake of an ill-timed move to buy SolarCity. The situation took a turn for the worse after a fatal Model S Autopilot crash raised concerns about the technology’s reliability. Now shareholders are not likely to be in the best of spirits because the firm is building fewer cars than expected and the stock might trade lower when the markets open tomorrow.
Tesla missed delivery targets for second straight quarter
News coming out of Tesla Motors reveals that the firm delivered 14,370 cars in the second quarter of the year. The breakdown of the delivery shows that the firm delivered 9,745 Model S and 4,625 Model X vehicles. In comparison, the firm delivered 14,820 cars in the first quarter of the year. More so, the second quarter delivery came short of the projected 17,000 Q2 delivery numbers from the firm.
The second quarter deliveries came short of the first quarter delivery numbers and it seems all the talks about an increase in production at the firm were inaccurate. Tesla in its defense noted that it actually built 18,345 cars in the second quarter but that about 5,150 of those are in the process of being delivered. Nonetheless, those 5,150 cars weren’t delivered in the second quarter and they’ll be added to the third quarter numbers.
From the hard numbers, Tesla has delivered about 29,190 cars in the first half of 2016. If we add the 5,150 “soon to be delivered” vehicles; then, the firm produced 34,340 cars in the first half of the year. However, the firm has made a bold plan to deliver between 80,000 and 90,000 cars this year; hence, the firm must produce and deliver 45,660 cars in the second half of the year to meet the low end of its target.
Model X production increase is here to stay
Tesla Motors had to fight many battles to get the Model X SUV out from the factory to the roads. Even after the SUV had hit the roads, it is being assailed by all forms of malfunctions from doors that won’t open as intended, seats that won’t fold, and a panoramic windshield that magnifies the heat from the sun. However, the firm is trudging along in the solving the problems that has ailed the car.
The Q2 delivery numbers show that Tesla has solved most of the problems that were slowing production on the SUV. In the Q4 2015, the firm produced and delivered 208 Model X. In the first quarter 2016, the firm said it was capable of producing 750 Model X per month and that it hopes to make 1,000 Model X per month by the end of the second quarter. The fact that the firm produced and delivered 4,625 Model X in the second quarter shows that the firm can now produce more than 1,000 Model X per month.