"Extreme Production Ramp" Slows Tesla Deliveries | Edmunds

"Extreme Production Ramp" Slows Tesla Deliveries


PALO ALTO, California — Tesla Motors had difficulty getting 2016 Tesla Model S sedans and Tesla Model X SUVs into the hands of customers in the second quarter for reasons that include an "extreme production ramp," the automaker announced on Sunday.

"Due to the extreme production ramp in Q2 and the high mix of customer-ordered vehicles still on trucks and ships at the end of the quarter, Tesla Q2 delivers were lower than anticipated at 14,370 vehicles," the company said in a statement. "In total, 5,150 customer-ordered vehicles were still in transit at the end of the quarter and will be delivered in early Q3."

Almost half of the quarter's production occurred in the final four weeks.

Second-quarter deliveries consisted of 9,745 Model S and 4,625 Model X vehicles.

Tesla missed its forecast of 17,000 vehicles for the quarter, the second time that its deliveries have fallen short this year.

But Tesla said it expects to produce and deliver about 50,000 vehicles during the second half of 2016.

The electric-car manufacturer blamed an earlier shortfall on parts shortages for the Model X.

Tesla is in the process of a major boost in production, saying it intends to build 500,000 cars a year by 2018.

The affordable 2018 Tesla Model 3, which will have a price tag of around $35,000, will arrive at Tesla showrooms in late 2017.

The Model 3 targets the BMW i3, Chevrolet Bolt and Nissan Leaf.

Edmunds says: Tesla experiences some growing pains as it continues to work toward an ambitious production goal.

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