Published: Sun, July 17, 2016
Economy | By Melissa Porter

Tesla Shares Falling After Deliveries Hit Near 2-Year Low

Tesla Shares Falling After Deliveries Hit Near 2-Year Low

Tesla Motors delivered 14,370 vehicles to customers in the second quarter of this year, over 15 percent less than its own target, the USA electric-car maker has said.

In 2015, Tesla had flat deliveries in the country after delivering the exact same number, 4,039 Model S units, two years in a row, based on registration data.

The firm said an unusually large number of cars were still in transit to customers, while it also blamed the "extreme" ramp-up in production which led to nearly half of the quarter's vehicle being made in the final few weeks. But it had estimated it would produce 20,000.

Tesla also lowered its estimate of deliveries in the second half of the year, to 50,000, meaning its full-year deliveries would fall short of the 80,000 to 90,000 vehicles it forecast in April.

The two people in the auto survived the July 1 accident, the Free Press reported, as did the driver and passengers in a vehicle that hit the upside-down Tesla.

Tesla Motors CEO Elon Musk bristled over a report suggesting that the company should have disclosed the recent death of a Tesla Model S owner in a crash sooner, arguing the incident "wasn't material" to the automaker's finances.

Investors have lately started to show their reluctance towards Tesla's ambitious goals of selling 500,000 cars by 2018, as the latest misses have put under doubt the company's ability of handling the hype around its upcoming 35.000-dollar Model 3.

Shares of Tesla are down almost 3 percent to about $210.15 amid a broader stock market decline. Tesla also noted that even if the vehicle collided into the front or rear end of the trailer at high speed, injuries will be kept minimal as the car's safety system is programmed to prevent serious injuries. Thus far, Tesla released a statement to Electrek, saying that it now has "no data to suggest that Autopilot was engaged at the time of the incident" and that "until the customer responds, we are unable to further investigate". Analysts questioned Tesla taking on a new challenge at the same time it tries to ramp up production to meet demand for the Model 3.

Like this: