Tesla deliveries were down 15% in the second quarter to 22,000 electric vehicles, from over 25,000 in the previous quarter. Despite the slowdown, deliveries were up 53 percent from the same period in 2016.
Tesla blamed a severe production shortfall of 100 kilowatt-hour battery packs. The company said production average 40 percent below demand, until early June. But once the issue was resolved, Tesla said production speed rebounded.
Tesla produced 25,708 vehicles in the quarter, bringing production for the first half of the year to 51,126.
This will be the last quarterly deliveries report before the company commences Model 3 deliveries this month.
Tesla is set to begin production of its first Model 3 all-electric sedan on Friday, earlier than expected, according to the company’s chief executive, Elon Musk.
The vehicle has “passed all regulatory requirements for production two weeks ahead of schedule,” Musk said in a series of posts to Twitter late Sunday.
After throwing a “handover party” for the first 30 customers on July 28, the Model 3’s production rate should ramp up “exponentially,” with 100 sedans to come in August and more than 1,500 in September, he added. “Looks like we can reach 20,000 Model 3 cars per month in Dec,” Musk said.
At least 380,000 people have put down refundable $1,000 deposits for Model 3s, though Tesla hasn’t publicly updated that number since early last year. At the production pace Musk predicted, most buyers will have to wait at least until 2018 for their cars.