While these numbers depict the cars that are delivered to the customers, the company says that there are still about 5,150 cars that are in the process of being delivered. Due to a steep production ramp, almost half of the quarter’s production occurred in the final four weeks of the period.
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The Palo Alto, Calif. -based company delivered 14,370 vehicles during the second quarter, including 9,745 units of the Model S sedan and 4,625 of the Model X crossover. The company had set a target of 2,000 cars per week, and it is finally gaining momentum in production.
Joshua D. Brown of Canton, Ohio, died in the accident May 7 in Williston, Fla., when his Tesla Model S failed to automatically activate its brakes and crashed into a tractor-trailer.
The company is citing production obstacles as the reason for the missed targets, and mentioned that there are more than five thousand of its completed automobiles now in transit that have not yet been received by their buyers.
Even if it hits the 50,000 target, the company will still fall just short of its earlier expectation that it will deliver between 80,000 and 90,000 vehicles this year. The company made sure to note that the average rate for road fatalities in the United States is one death for every 94 million miles travelled. This forecast also backs the company’s 2H forecast of delivering 50,000 units.
Tesla’s shares dropped 3 per cent in after-hours trading after the government said it would investigate the crash. Both quarters, however, represented record production levels for the company.
It is part of the company’s DNA to release aggressive plans for expansion, new markets, production, features like Autopilot, and vertical integration.
While the number of cars delivered and produced in the second quarter has been low, there are significant signs of improvement.
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Last week, Telsa made the news for all the wrong reasons. It is now being tested by selected Tesla users only. However, despite that, the technology will still require hands-on-wheels, which means that drivers will still be required to take over the auto immediately in case of any emergency.
