Tesla (TSLA) Q2 Deliveries and Production Misses Guidance

On Sunday, Tesla (NASDAQ: TSLA) announced that it delivered 14,370 vehicles in the second quarter, which was below the 17,000 guidance. Delivers consisted of of 9,745 Model S and 4,625 Model X.

Tesla cited the extreme production ramp in Q2 and the high mix of customer-ordered vehicles still on trucks and ships at the end of the quarter for the miss.

In total, 5,150 customer-ordered vehicles were still in transit at the end of the quarter and will be delivered in early Q3. That amount was higher than expected (there were 2,615 vehicles in transit to customers at the end of Q1) and is more than a third of the number of cars that completed delivery in Q2.

Global Equities analyst Trip Chowdhry commented that had Tesla had similar number of Auto Units in transit in 2Q'2016 as they had in 1Q'2016, Tesla would have delivered about 17,300 units, slightly beating their delivery guidance.

Tesla produced 18,345 vehicles in Q2, an increase of 20% from Q1. This also missed guidance of 20,000 vehicles. The company exited the quarter consistently producing just under 2,000 vehicles per week. Due to the steep production ramp, almost half of the quarter's production occurred in the final four weeks.

With continued productivity improvements, Tesla expects output to reach 2,200 vehicles per week in Q3 and 2,400 vehicles per week in Q4. Current order rate trends and backlog support production at those levels. In total, Tesla expects to produce and deliver about 50,000 vehicles during the second half of 2016, approximately equal to all of 2015.

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