Electric vehicle company Tesla reported delivery of 343,830 vehicles in the third quarter. Although this is a new record from the delivery numbers it reported earlier this year, it failed to meet the estimates of Wall Street.
Wall Street’s estimate ranged from 358,000 to 371,000 vehicles. Earlier this year, the company’s operations were affected by the shutdown of its China factory and the challenges it had with opening factories in Berlin and Austin. This took a toll on its deliveries. A rebound was expected, and although the company did see a rebound, it wasn’t up to what had been expected.
When compared with other quarters, Tesla also has a huge gap between production and delivery numbers. In the third quarter, the company produced 365,923 vehicles.
The company said the lack of capacity on the logistics network it relied upon for delivery of its vehicles to its customers was to blame for the failure to meet estimates. In a statement, it said that “As our production volumes continue to grow, it is becoming increasingly challenging to secure vehicle transportation capacity and at a reasonable cost during these peak logistics weeks. In Q3, we began transitioning to a more even regional mix of vehicle builds each week, which led to an increase in cars in transit at the end of the quarter. These cars have been ordered and will be delivered to customers upon arrival at their destination.”
In a tweet, Elon Musk shared that “Customer experience suffers when there is an end-of-quarter rush. Steady as she goes is the right move.” This suggests that the company would make adjustments to evolve beyond its end-of-quarter pushes.
Customer experience suffers when there is an end of quarter rush. Steady as she goes is the right move.
In the third quarter, Tesla produced 19,935 of its Model X vehicles and delivered 18,672 while 345,988 Model Y vehicles were produced and 325,158 of them were delivered.
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Ibhadojemu Lucky Emmanuel is a graduate of Education and Economics from the University of Benin. He has a passion for tech and business and has been writing professionally for over a period of five years. He's written across various topics and segments and knew tech-business was it when he first stumbled on it. He has a great passion for music and arts, and wants to visit as many countries as he can someday.
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