Tesla Motors has warned of Model X production delays, blamed on internal “hubris” and supply issues.
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Tesla shares were trading slightly lower on Tuesday, as limited Model X output pushed Tesla’s total quarterly deliveries below Wall Street expectations.
Tesla is seemingly on the brighter side these days especially upon reaching a total of 276,000 preorders in a matter of days for its latest vehicle, the Tesla Model 3.
That number shot up 50% from the sales volumes posted in the same quarter past year, but missed the company’s own guidance of 16,000 – earlier argued by analysts as being too ambitious.
Tesla also announced Monday that it had sold 12,420 of its Model S sedan in the first quarter.
Tesla says it experienced “severe” Model X parts shortages in January and February, but has now resolved them.
Tesla said on Monday that parts shortages hampered vehicle production and sales in the first quarter, but the electric auto maker still plans to build 80,000 to 90,000 vehicles this year. The production pace picked up to the rate of 750 units per week by the last full week of March, but many vehicles were completed too late to be delivered to customers before the end of the quarter, Tesla notes. The parts comprise of half a dozen out of more than 8,000 unique parts, which affected delivery of cars.
According to the manufacturer specs, the base Tesla Model 3 can do 0 to 60 in less than 6 seconds, but high end versions can even go faster.
It said it is addressing all three issues “to ensure that these mistakes are not repeated with the Model 3 launch”, which is scheduled in about 18 months. The interest has been so high that Mr. Musk tweeted the company was “definitely going to need to rethink production planning”.
There’s no exact release date for Tesla Model 3 but it’s expected to be in late 2017.
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The confirmed US$35,000 starting-price in the United States may have helped here, but buyers in other markets including Australia have already signed up without knowing the locked-in purchase price of their new cars.
