Tesla falls short of delivery goal, cites ‘hubris’

Tesla Motors wants you to know — it sells cars besides the Model 3.

The company announced Monday it delivered 14,820 luxury sedans and SUVs in the first quarter of 2016, falling short of the expected 16,000 deliveries. The tally includes 12,420 Model S sedans and 2,400 Model X crossover SUVs.

The stock price for Tesla Motors dropped about 3 percent in after-hours trading, after several days of gains tied to the frenzy of the Model 3 release.

The electric vehicle maker has taken about 300,000 reservations for its $35,000 Model 3 sedan since the car went on sale Thursday. CEO Elon Musk tweeted Saturday that the company would need to build a plant in Europe to keep up with demand.

But the company acknowledged first quarter deliveries of the S and X were slowed by parts shortages caused by “Tesla’s hubris.” The Palo Alto automaker added too much new technology to its luxury SUV, it said in a statement, and neither the company nor its suppliers could manufacture enough key parts. The parts shortages were limited to a half-dozen items in a vehicle with more than 8,000 pieces.

Tesla said it would fix the root problems before the Model 3 launch. The first, lower-priced sedans are expected to be delivered in late 2017.

The company expects to deliver 80,000 to 90,000 vehicles this year.

Photo: Bay Area News Group

 

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  • Rich Partain

    All car manufacturers have production problems. But not very many have hundreds of thousands of serious buyers lined up clamoring for their cars. These minions know a good deal when they see it.

    • Alan

      Indeed, “too many customers are lined up” is only a problem if those customers get distracted by some other product/service and walk away.

      • Rich Partain

        So, they can get their deposit back and someone will gladly take their place in line.

  • chickenbone1

    Tesla is interesting. Still just an early adopter tech gadget. Would never buy a new unproven model. Let others take the risk. If product is good, then buy after the hype. Could be a good commuter car, yet not sold on the recharging (it could be a real PITA). The S is nice, really like the interior and the software updates (120k price tag, na..rather have a Porsche 911). Yet, would take a hellcat challenger which beats it with real horsepower and aggressive looks on the straight track. Those S models are surprisingly fast and are super quick off the line. I give Tesla credit for innovation but not sold on their story. Still just a yuppie fad at this point with some interesting concepts.

  • teddy martin

    Tesla fell short of delivery promises and the company blames hubris? That sounds like an Obama excuse. Blaming their own arrogance for making claims they couldn’t meet.
    This is a pure Yuppie car. You have to have a private home to buy one. No one in a high rise condonium can have one unless the condo has lots of charging stations – which no one has.
    Second, it is a show only car as its limited mileage nullifies whatever practicality it has. You can’t use it for your vacation unless you are staying at a Hotel 20 miles from your home.
    And be prepared to spend hours charging it once you even find a charging station. And i wouldn’t want to be on a line for an electirc charging pump.
    Buy a BMW 3 series for more or less the same price. Very good gas mileage. Plenty of zip and you can take it anywhere for any distance. Cross country not a problem. . And it is a very admirable care in your driveway as well.

  • mzungu

    CFO: “Boss, We going need more cash to dig out of this hole.”
    Musk: “I got an idea, let’s finish up the clay model, and do a crowdfunding!”

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