Tesla lowers 2014 production forecast, delays Model X again

November 7, 2014
Tesla Motors appears to be encountering difficulty keeping up with demand for the Model S and bringing to market the Model X.
The startup has lowered its production forecast for the Model S, expecting to deliver 33,000 units rather than the previous target of 35,000 sedans. Nonetheless, the numbers still represent a significant jump from 2013 production.

After introducing the all-wheel-drive Model S, the company now offers a wide range of powertrain and battery options. Reducing the configuration options has been mentioned as one strategy to help boost manufacturing numbers.

“People don’t appreciate how hard it is to manufacture something,” CEO Elon Musk said in an earnings call, as quoted by Forbes. “There are 70,000 unique parts in a car, and Model S is a complicated car.”

The 2014 hiccup has been partly blamed on a shutdown of the company’s Fremont plant, which halted Model S production as the facility was retooled to support Model X assembly on the same line.

Confirming analyst predictions, Tesla has also confirmed that its Model X — originally expected to begin production in 2013 — will now have to wait until late in 2015. Musk suggests “more validation testing” is necessary, though he also admits that maybe Tesla needs to be less of a “perfectionist” on future products.

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