Tesla Motors is “on track” to deliver 80,000 to 90,000 new vehicles in 2016, the company announced today.
Tesla delivered 12,420 Model S vehicles and 2,400 Model X vehicles in the first quarter of 2016, a 50% increase in car deliveries year over year, according to a company press release. First quarter deliveries were affected by “severe” supplier parts shortages in January and February.
The root causes of the parts shortages were: Tesla’s hubris in adding far too much new technology to the Model X in version 1, insufficient supplier capability validation, and Tesla not having broad enough internal capability to manufacture the parts in-house. The parts in question were only half a dozen out of more than 8,000 unique parts, nonetheless missing even one part means a car cannot be delivered. Tesla is addressing all three root causes to ensure that these mistakes are not repeated with the Model 3 launch.
Production is now underway and 1Q orders have significantly exceeded 1Q deliveries, with a 45% increase in Model S orders year-over-year, the company said. “Tesla reaffirms its full-year delivery guidance. These additional details are being provided because of the unusual circumstances of this quarter, and will not typically be provided in quarterly delivery releases going forward,” according to the release. Additional information and details on the quarterly performance will be provided in Tesla’s quarterly shareholder letter.
Tesla revealed its highly anticipated Model 3 electric car last week, with one primary goal: to bring the company’s electric vehicle technology to the masses.
Each advance order required a $1,000 reservation charge, and within the first 24 hours, Tesla took in more than $115 million, according to Chief Executive Elon Musk. The reservation charge is refundable. Tesla also said financing for the Model 3 will be available.
