In the second quarter, Tesla Motors Inc. delivered 14,370 vehicles, missing its target of 17,000 units. The company attributes the shortfall to what it calls an “extreme production ramp” where 50 percent of its manufacturing was conducted in the last 30 days.
Tesla is now projecting deliveries of 50,000 units in the second half of 2016, for an annual yield of 79,180 Model S sedans and Model X sport utility vehicles. If the company is to able to reach those production numbers, it will narrowly miss a previously projected goal of between 80,000 and 90,000 cars.
This is the second consecutive quarter in which Tesla has fallen short of its delivery targets. In the first quarter, Tesla attributed its shortfall to “hubris,” claiming that a parts shortage was the result of over-engineering the Model X.
Tesla is increasing production capacity at its plant in Fremont, California in an effort to produce 500,000 vehicles a year by 2018. Attaining that level of output will depend on its Reno, Nevada-based battery factory coming online and availability of its forthcoming Model 3 sedan.