Tesla Deliveries Leap In Q2 – But Could Have Been Higher

Tesla reported a spike in second quarter deliveries, but it could have been higher if more 100 kWh battery packs had come off the production line.

On Monday, Tesla, Inc., issued its Q2 2017 vehicle production and delivery report. Slightly more than 22,000 vehicles were delivered, which broke out to 12,000 deliveries of the Model S, and just over 10,000 of the Model X. That’s 53-percent deliveries over Q2 2016, and brings the total to 47,100 for the first six months of this year.

As noted, the company had a setback with the 100 kWh battery packs, the production of which averaged about 40 percent below demand through early June. Once Tesla was able to get battery production in line with demand, the rest of the month did very well. Tesla reported that orders and deliveries were strong, making for one of the best Junes in the company’s history.

The 100 kWh battery pack was introduced by the electric carmaker last August, tied into a Model S P100D available in Ludicrous mode.

In January, the Environmental Protection Agency issued new range estimates. The 2017 Model S 100D had an estimated 335 miles of range with the new 100,000 kWh battery pack, and the 2017 Model X 100D was given a 295 mile estimate.

In April, EPA confirmed the 2017 Model S 100D’s range at 335 miles. The 2017 Model X is listed by EPA at 289 miles of range, as the crossover SUV waits for the estimated 295 miles to become official.

However, that rating is for the Model X P100D, which uses more battery power than the Model X 100D. The same is true for the 2017 Model S P100D, which gets 315 miles of range, versus 335 for the Model S 100D.

Things are falling in place for Tesla in Model X sales. The quarterly report sees its untapped sales potential seeing improvements. After a long wait, there are more Model X units available for test drives and store inventory. Production quality has seen improvements, too, with it now being rare for a Model X to have initial quality problems, the company reported.

Demand for the Model X has been increasing. HybridCar’s Dashboard reported the Model X beat the Model S in May U.S. sales, 100 units ahead. That changed course in June, with the Model S getting back to No. 1 with a 100 unit lead.

Unless the global economy tanks, Tesla expects combined deliveries of the Model X and Model S to do better than the first half of the year. That could place deliveries at around the 100,000 mark for these two models – much better than the 76,230 units delivered in 2016.

Tesla’s total production and delivery will be much higher this year, with certified production of the Model 3 meeting safety requirements starting this week.

In Twitter posts made Sunday, CEO Elon Musk shared a forecast on Model 3 production and deliveries. The first 30 units will be delivered to customers on July 28. August will see at least 100 units manufactured, and more than 1,500 of them will be completed in September.

The company will produce about 20,000 Model 3s per month by December. Model 3 deliveries should be strong, with more than 400,000 pre-order deposits placed last year.

SEE ALSO:  Tesla Ups The Ante with 100kWh Battery And Even More ‘Ludicrous’ Speed

Production and deliveries of the Model S and Model X were closely tied in the first half. The company’s Q2 statement said there were 25,708 vehicles produced, bringing first half 2017 production to a total of 51,126. That’s close to the more than 22,000 vehicles being delivered in Q2, with a total of 47,100 deliveries for the first half of the year.

Tesla worked on increasing customer satisfaction while their electric cars are being serviced. Fully loaded, newly built Model S and Model X vehicles were added to the service loaner fleet.

“We always want the service loaner Tesla to be *better* than the customer car being serviced. The customer should never suffer for something that is our fault,” the company said in the Q2 statement.

The Q2 production and delivery report didn’t seem to impress stock traders. The company closed at $352.62 yesterday, a drop of 8.99 percent.


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