Tesla shares fall sharply on revised sales targets
Company cuts outlook for electric vehicles by nearly 10 per cent
PALO ALTA, Calif—Despite relatively strong second-quarter results, lower sales targets for its Model S and Model X vehicles have sent Tesla shares down as much as 10 per cent in early trading Aug 6.
Though the company recorded deliveries of 10,045 vehicles and achieved its gross margin target for the second-quarter of 2015, its revision to its electric vehicle sales target has left investors feeling uncertain. On May 6, Tesla told shareholders it remains “confident in [its] ability to deliver approximately 55,000 Model S and Model X vehicles combined in 2015,” but the company has now reconsidered that target.
“We are now targeting deliveries of between 50,000 and 55,000 Model S and Model X cars in 2015,” the company said Wednesday.
Aside from the unwelcome news, Tesla noted equipment installation and final testing of its Model X is going well, but “there are many dependencies that could influence [its] Q4 production and deliveries.”
With the introduction of Tesla Energy, the automaker is also transitioning from being a single product company to a multi-product company. Tesla is planning to start production of Tesla Energy products at its Fremont Factor this quarter and then ramp up production toward the end of the year.
The company also noted that its Gigafactory, which is currently under construction, will offer expanded battery module and pack production as well as a more automated line when it enters into service. Construction contines to go according to plan, the company said.