Tesla delivered 14,820 vehicles in Q1; parts shortages dogged Model X; on-track for full-year guidance
Tesla delivered 14,820 units worldwide in Q1 of 2016, comprising 12,420 Model S vehicles (84%) and 2,400 Model X vehicles (16%). Q1 deliveries were almost 50% more than Q1 last year and Tesla said it remains on track to deliver 80,000 to 90,000 new vehicles in 2016. Tesla said that the Q1 delivery count was impacted by “severe” Model X supplier parts shortages in January and February that lasted much longer than initially expected.
Once these issues were resolved, production and delivery rates improved significantly. By the last full week of March, the build rate rose to 750 Model X vehicles per week; many of these vehicles were built too late to be delivered to their owners before end of quarter, however.
Tesla said that the root causes of the parts shortages were its self-described “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.
Tesla said it is addressing all three root causes to ensure that these mistakes are not repeated with the Model 3 launch.
Because production is now on plan and Q1 orders exceeded Q1 deliveries by a wide margin, with Q1 Model S orders being 45% higher than Q1 last year, Tesla reaffirmed its full-year delivery guidance.
There may be small changes to the Q1 delivery count (usually well under 1%), as Tesla only counts a delivery if it is transferred to the end customer and all paperwork is correct.