Explaining the sales forecast cut, the company said in a statement: ”While our equipment installation and final testing of Model X is going well, there are many dependencies that could influence our [fourth-quarter] production and deliveries“.
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Revenue has risen some 20 percent in the past 12 months as Tesla produced a record 12,807 vehicles and delivered 11,532. Because the SUV and the existing Model S share the same assembly line, a shortfall by one Model X supplier could slow output of both vehicles. However, the automaker lowered its annual deliveries target from 55,000 to 50,000 units.
Particularly in an industry as capital intensive – and competitive – as cars.
The company had promised to deliver 55,000 cars by year’s end, putting a lot of pressure on the second half of the year.
Tesla Motors Inc. on Thursday said it has sent a software patch to address security flaws in the Tesla Model S sedan that could allow hackers to take control of the vehicle. Mr. Erickson says this year’s currency fluctuations have stimulated a faster move to best-cost countries, possibly to Tesla’s benefit. “To build long-term value, our first priority always has been, and still is, to deliver great cars”.
“Simply put, in a choice between a great product or hitting quarterly numbers, we will take the former”, he wrote in a letter to shareholders. Tesla was expected to earn revenue of $1.17 billion and take a loss of $0.59 a share, or $117 million. Eight analysts surveyed by Zacks expected $1.16 billion.
“We have been producing release candidate Model X bodies in our new body shop equipped with more than 500 robots as we fine-tune and validate our production processes”, Tesla said in the letter.
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Tesla is also gearing for a new project to adapt auto batteries to store power in homes and businesses. In Asia, orders for the Model S have nearly doubled following their revision of strategy for the China market.
