Tesla Motors Lowers Target For Car Delivery Following Release Of 2nd Quarter Results
In the recent letter that it sent to its shareholders, Tesla Motors, Inc. has said that it will be lowering its target deliveries for their cars in 2015. Tesla Chairman and Chief Executive Officer Elon Musk as well as Tesla Chief Financial Officer Deepak Ahuja have said that the company would prefer to produce “a great product,” as opposed to just “hitting quarterly numbers.”
As such, the target deliveries for Tesla’s Model S and Model X cars are now between 50,000 and 55,000. In the letter to shareholders for the first quarter of 2015, the target was stated to be around 55,000.
The revision of the target is also said to be due to Tesla taking into account the ability of their suppliers to provide high quality parts consistently. Hence, the company has said that there a number of “dependencies” that can possibly influence the company’s production for the fourth quarter. For the following year, however, Tesla is looking at being able to produce between 1,600 and 1,800 Model S and Model X vehicles per week.
The second quarter total non-GAAP revenue for Tesla Motors amounted to $1.2 billion, an increase of almost 40%, compared to last year. Moreover, Tesla Motors had said that orders for its Model S had increased to almost 30% year over year in the U.S. during the said quarter. In Asia, orders for the Model S have almost doubled following their revision of strategy for the China market. Meanwhile in Europe, orders for the Model S also grew by more than 50%, despite the said car increasing its price twice in a span of six months.
For the third quarter, Tesla is expecting to produce just a little over 12,000 vehicles, which amounts to a possible increase of over 60% from the previous year. Moreover, the company also plans to invest as much as $1.5 billion in capital expenditures to allow for a number of expansion projects, including production expansion.