Tesla Motors, the California-based electric automaker that rocked the automotive industry since it was established, has tanked after the recent official results for its second quarter.
Elon Musk, the billionaire entrepreneur and co-founder that also acts as the company’s chief executive officer, announced the automaker was lowering its sales forecast for the entire year to a range of 50,000 to 55,000 units from the earlier prediction of 55,000 vehicles. There are numerous challenges in place for the company’s new stance, and some of them have to do with the introduction of the Model X Crossover that has first deliveries scheduled for the latter part of next month. “Our biggest challenges are with the second-row seat,” commented Musk during the analyst conference call. “It’s an amazing seat, a sculptural work of art, but a very tricky thing to get right.” He also warned that other interior parts might become problematic next, though the model’s so-called falcon-wing doors that represent one of the main design traits are not among the issues.
More so, the assembly woes could heighten as the snags with the Model X could also have an impact on the production levels of the company’s Model S electric luxury sedan, the chief executive added. He also added that since Tesla also needs thousands of parts from as many suppliers the progress is also “really dependent on which supplier is the slowest and least lucky.” The top executive also appeared to be more realistic in the short term now, saying “we don’t want to set too-high expectations. Could we do 2,000 aspirationally? Yes. Do we want to commit to that? Ideally not.” He referred to the weekly production pace at the plant in Fremont, California, saying the average quota in 2016 will most likely be of around 1,600 to 1,800 vehicles.