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Tesla Production Up, But Sales Fall Short of Goal

Investigation ramps up into fatal Model S Autopilot crash.

by on Jul.05, 2016

The Model X accounted for barely a third of Tesla's second-quarter production.

While the U.S. new car market is clearly slowing down after a spectacular rebound from the Great Recession, Tesla Motors continues to boost sales at a double-digit pace – but still managed to fall short of expectations.

Tesla says it delivered 14,370 vehicles during the second quarter, but that was 15% less than the 17,000 the battery carmaker had predicted as recently as May. While Tesla had been hoping to roughly split production between the Model S sedan and newer Model X battery SUV, volume was still weighted more than two-to-one towards the electric sedan, apparently reflecting ongoing quality and production problems with the utility vehicle.

Beyond the Headlines!

News of the weak market performance comes at an inopportune time for Tesla. The maker is facing an investigation by the National Highway Traffic Safety Administration over the fatal crash of a Model S being driven in semi-autonomous Autopilot mode. There has been growing concern about the system, with numerous reports of it being misused by owners.