Tesla delivers 47,100 cars in first-half 2017, Q2 output hit by shortfall of battery packs

Tesla’s latest investor update reveals that the electric car manufacturer delivered just over 22,000 vehicles in Q2 (April-June 2017), of which just over 12,000 were Model S and around 10,000 were Model X. This represents a 53 percent increase over Q2 2016. Total vehicle deliveries in the first half of 2017 were approximately 47,100.

In addition to the above-mentioned Q2 deliveries, Tesla says about 3,500 vehicles were in transit to customers at the end of the quarter and will be counted as deliveries in Q3 2017.

On the production front, Q2 production totaled 25,708 vehicles, bringing first half 2017 production to a total of 51,126 units.

A company statement says, “The major factor affecting Tesla's Q2 deliveries was a severe production shortfall of 100 kWh battery packs, which are made using new technologies on new production lines. The technology challenge grows exponentially with energy density. Until early June, production averaged about 40 percent below demand. Once this was resolved, June orders and deliveries were strong, ranking as one of the best in Tesla history.” 

“Provided global economic conditions do not worsen considerably, we are confident that combined deliveries of Model S and Model X in the second half of 2017 will likely exceed deliveries in the first half of 2017.”

Model 3 production starts
Meanwhile, it was reported that production of the first certified production Model 3 sedan that meets all regulatory requirements had begun yesterday, in time for a handover event of around 30 customer cars at Tesla’s Fremont factory on July 28.

Production for the all-electric four-door will then be ramped up exponentially, with 100 cars produced in August, more than 1,500 produced in September and then 20,000 produced per month from December.

The Model 3 has an entry-level price of $35,000 (about Rs 22.10 lakh) and has been ordered by around 500,000 customers, which is the maximum output possible at Tesla's new battery-producing Gigafactory in Nevada.

Production starts as Tesla injects $1 billion (around rs 6,317 crore) of investment into the company, something CEO Elon Musk has previously said would help the company meet the high demand requirements of its newest model.

The manufacturer has raised capital to help production and ease the financial risk associated with the production run, which led to a rise in its share price that was also helped by reports of its future model plans, including the Model Y compact SUV, according to New York financiers.

Tesla has reaffirmed its pledge to deliver 500,000 vehicles in 2018 and one million in 2020, when the Gigafactory is expected to reach full capacity – a sharp rise from the 80,000 delivered in 2016.

(With inputs from Sam Sheehan, Autocar UK)