Tesla Motors Inc. (NASDAQ: TSLA) missed its second-quarter delivery target again and lowered its full-year outlook, raising investor’s concerns about production issues and questions about ambitious factory goals.
The electric-car maker delivered 14,370 vehicles in the second quarter, missing its projection of about 17,000, according to a company’s statement on Sunday. This is the second time in a year the company missed its delivery target.
The company explained that an "extreme production ramp led to almost half of the quarter's output in the last four weeks. The company also said that a large number of vehicles is still in transit to its customers. About 5,150 cars were still on trucks and ships and they will be delivered in the first part of this quarter.”
Tesla now expects to deliver around 50,000 vehicles during the second half of the year. Adding 29,190 vehicles in the first two quarters, the full year deliveries will be 79,180 vehicles, which slightly falls short of its earlier expectation of 80,000 to 90,000 deliveries this year.
“Tesla’s ongoing difficulty in managing launch and production of its vehicles reinforces our concerns around its ability to launch the Model 3 well and reach its pulled-forward goal of 500,000 deliveries in 2018,” Emmanuel Rosner, an analyst with CLSA, wrote in note to clients.
Analysts now question about whether Tesla will meet its ambitious production goals. CEO Elon Musk expects to build 500,000 electric cars in 2018 and 1 million vehicles in 2020. But Tesla still has a long way to go.
Tesla shares fell more than 3 percent during early morning trading.