Tesla postpones initial deliveries of Model X to Q3 2015

Article by Andrew Christian, on November 7, 2014

The initial deliveries for the Tesla Model X crossover will be postponed to the third quarter of 2015 as the carmaker wants to make sure that the EV will “delight customers.” Tesla chief executive Elon Musk said during the company’s third-quarter earnings conference call that while there is no “big thing” coming, but there are “a whole bunch of little things.”

He noted that people will appreciate that the carmaker “got the details right.” During the call, Tesla said it logged $74.7 million in net loss in the third quarter under generally accepted accounting principles, from $38.5 million in net loss in the same period in 2013. The carmaker managed to nearly double it revenues to $851.8 million in the recent quarter, from $431.3 million in the same period last year.

The higher revenues were attributed to higher sales in the third quarter. Tesla delivered 42-percent more Tesla Model S in the recent quarter to 7,785 units. The carmaker posted $291 million in operating expenses in the quarter, mostly r&d related to Model S engineering upgrades and the Model X launch.

Operating expenses for same quarter last year were $133 million. Tesla disclosed that capital outlays in the current quarter will reach $350 million. At September 30, 2014, Tesla had $2.4 billion in cash and cash equivalents.

During the conference, Tesla gave a forecast of 33,000 Model S deliveries in 2014, as the carmaker completed the assembly-line upgrades at its Fremont site in California this summer. However, the forecast is below Tesla’s 35,000 unit target, no thanks to delays in commencing output of cars with a dual-motor all-wheel-drive system and “autopilot” features.

Tesla is targeting to produce an annual rate of 100,000 vehicles by the end of 2015. Musk remarked that sees a 50-percent surge in orders and deliveries of the Model S in both 2015 and 2016, shrugging off a report in The Wall Street Journal suggesting that demand for the vehicle.

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