The company delivered 14,402 vehicles in the second quarter, missing its goal of 17,000.
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On its missed vehicle delivery targets Musk said: “We were in production hell for the first six months of the year”.
Musk said issues with suppliers were among the reasons for the agonizing ramp-up in production for the Model X SUV, which went on sale in fall past year. This is down to the fact that Tesla did have difficulty with production of the wing doors, while buyers also had issues to.
Tesla finished the second quarter of 2016 with $1.56 billion United States dollars in sales and with an adjusted loss of $1.06 USD per share.
Tesla Motors Inc. posted a second-quarter loss of $293.2 million Wednesday, a shortfall that was far worse than Wall Street expected.
Yesterday, the Palo Alto, CA-based electric vehicle maker reported an adjusted loss of $1.06 per share, wider than the loss of 52 cents per share that analysts had projected. As part of this plan the American electric vehicle manufacturer will be bringing in the Model Y. This compact SUV will be based on the same chassis as the Model 3 luxury sedan that the company revealed in April.
Tesla stock is now down $1.56 to $225.64. But Tesla could end the year just shy of its original delivery target of 80,000 to 90,000 vehicles for 2016 if it delivers 50,000 cars in the second half of 2016. At the earnings call, company’s new chief financial officer Jason Wheeler said that if the company is able to deliver 50,000 cars in the remaining half of the year, it will able to make non-GAAP profit.
Investors who were not happy with the loss of $1.06 per share on an adjusted basis – 77% more than estimates and double that of previous year – were somewhat relieved thanks to the manufacturing progress and affirmation of goals.
Tesla completed the design phase of the Model 3 in the second quarter and has already installed some production equipment for the vehicle.
Musk’s ambitious promises to broaden Tesla’s product offerings come as the company is bleeding money.
Moreover, there is a huge interest surrounding the upcoming Model 3 of Tesla.
Tesla is hoping the Model 3 will widen its market appeal with a more affordable auto. Musk stated that the company plans to shift their focus to the Model Y after the Model 3, meaning that there’s still quite a long way to go. USA safety regulators are investigating a fatal Florida crash in May that involved Tesla’s Autopilot driver-assistance features.
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Musk then revealed that he plans to visit one supplier this weekend who apparently does not have its sh*t together in order “to figure out what the hell is going on there”. No matter what it is, Tesla cars are headturners, aren’t they? Earlier this week the companies agreed to a $2.6 billion merger.
