Tesla Motors Inc. has slashed its revenue forecast for the full-year 2012 due to the slower-than-expected rollout of its Model S sedan. The news sent the electric car maker down by nearly 10 percent. Tesla said in a filing with the US Securities and Exchange Commission that it is now expecting its full-year 2012 revenue to be in the range of $400 million to $440 million, which is substantially lower that its previous revenue outlook of $560 million to $600 million.
Tesla disclosed in the SEC filing that it has methodically increased its Model S production at a rate slower than it had earlier anticipated.
The electric car maker noted that certain suppliers have experienced delays in meeting its demand as the company continues to focus on supplier capabilities and constraints.
Tesla has divulged that it expected the Model S, with a starting price of $57,400, to account for 90 percent of the its revenue for 2012. The electric car maker has plans to roll out its Model X crossover utility vehicle in 2014, followed by a smaller sedan dubbed Gen III in 2015.
Morgan Stanley analyst Adam Jonas, in a research note to clients last week, described the slower-than-expected rollout of the Model S as "the worst-kept secret in the industry."
He called the concerns over the slow rollout as "overdone," and upgraded his rating on Tesla’s stock to "overweight." Jonas said in the note that they think Tesla has the right idea, which is to “get it right the first time." He added that the efficacy of the product is “what matters most."