Tesla Motors Inc. reported fourth-quarter deliveries that fell short of its own forecasts as production delays continue to plague the carmaker led by CEO Elon Musk. The Palo Alto, Calif.-based maker of electric cars and energy-storage products delivered about 22,200 vehicles in the final three months of last year, according to a statement Tuesday. The total trailed the automaker’s projection for 25,000 units and brought its full-year tally to 76,230 vehicles, below its forecast for at least 80,000 units.
Musk has a history of setting ambitious targets and timelines for Tesla and coming up short, including his calls for how soon the Model X SUV and less-expensive Model 3 sedan would follow the top-selling Model S. The pressure on Tesla to make good on its goals has risen following the merger last year of the carmaker with solar-panel installer SolarCity Corp., since both have typically reported losses and burned cash. Short-term production issues related to new hardware for the Autopilot driver-assistance system contributed to transport delays or prolonged delivery of about 2,750 cars to customers, according to Tesla. The Autopilot-related challenges began in late October and lasted through early December.
Musk is trying to transform Tesla from a niche seller of high-priced electric vehicles into high-volume manufacturer making 500,000 autos annually in 2018 – nearly six times the number of cars and SUVs it produced last year. While the 76,230 vehicles Tesla delivered in 2016 was a record and up 51 percent from a year earlier, the company has a ways to go to be considered a mainstream player. By comparison, Ford Motor Co. sold 72,089 F-series pickups in the month of November alone. Tesla has been counting on keeping sales of its Model S sedans and Model X SUVs strong while consumers await the Model 3, which is planned for volume production in late 2017. Musk urged workers in August to cut costs and deliver every car possible.
