Tesla Motors Inc TSLA shares sold off nearly 3 percent in Monday's after-hours session after the company announced Q1 deliveries consisted of 12,420 Model S vehicles and 2,400 Model X vehicles. The company as of February had been expecting about 16,000 deliveries between the two models.
CNBC's Phil LeBeau Tweeted "BREAKING: $TSLA delivered 14,820 vehicles in Q1" about 15 minutes ahead of the release, causing the initial selloff.
Tesla remains on track to deliver 80,000 to 90,000 new vehicles in 2016.
"The Q1 delivery count was impacted by severe Model X supplier parts shortages in January and February that lasted much longer than initially expected," the press release said. "Once these issues were resolved, production and delivery rates improved dramatically. By the last full week of March, the build rate rose to 750 Model X vehicles per week, however many of these vehicles were built too late to be delivered to their owners before end of quarter."
So what was the cause of the shortage? The company took responsibility.
"Tesla's 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. The parts in question were only half a dozen out of more than 8,000 unique parts, nonetheless missing even one part means a car cannot be delivered," the release said. The company will address these three root causes to ensure mistakes aren't 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 reaffirms its full-year delivery guidance," the release continued. "These additional details are being provided because of the unusual circumstances of this quarter and will not typically be provided in quarterly delivery releases going forward."
There may be small changes to the Q1 delivery count (usually under 1 percent), as Tesla only counts a delivery if it's transferred to the end customer and all paperwork is correct.
The stock traded recently at $241.27, down 2.3 percent in the after-hours session.
Image credit: Michael Fraley, Flickr
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