Tesla Motors Inc.’s (NASDAQ:TSLA) dreams to increase its automobile sales to 55,000 vehicles this year may hit a roadblock. As the latest quarter results aren’t as promising as the company’s targets. But still the CEO Elon Musk is confident to meet set targets. Now the firm has altered its set deliveries target to a range of 50,000 to 55,000 vehicles in 2015. Previously the firm aims sales of 55,000 automobiles, without the lower range.
The firm is facing hurdles in accomplishing its set targets on an account of the following reasons:
One of the possible reasons of shortfall in production levels is the company’s increasing focus on the upcoming space-age all-electric SUV, the Model X, which was slated to go in public last year but due to several reasons the car’s launch was delayed and now the car will be going to sale on September 30. Tesla is hoping high from the Model X but it has also warned that any delay from single supplier would potentially hurt car deliveries.
On the other hand increasing attention of firm towards Model X could hurt the leading Model S sedan production. Consequently, inducing more problems for the firm.
Other factor of possible delay is the company’s focus on the storage batteries. The firm has planned to start production in this quarter. When it announced its new Powerwall storage batteries in May, Tesla said deliveries would start “this summer.” Musk said the company is “basically sold out of what we could make in 2016.”
Now it is up to the Tesla’s genius to orient its firm in such a way so as to overcome these problems in order to achieve the set goals. Musk is eyeing on 500,000 car sales in 2020 from 50,000 cars this year.
“Going from here to 500,000 cars a year is a much smaller leap than what we’ve done in the last five years,” Musk said in a conference call with investors. The firm sold 10,045 cars in the first quarter and 11,507 in the second quarter, so it is 33,448 cars short of the 2015 target. So in order to accomplish the set 50000 sales target the firm will have to sell almost 17,000 cars in the third and fourth quarter.
