Tesla Motors Inc (NASDAQ:TSLA) – the electric car maker – has always kept quality at its focus and the investors have been once again reminded that the company always believe in delivering quality goods. The third major addition to the car lineup of Tesla is going to be the Model X sports utility vehicle, which is being delayed by the company as informed by it on Wednesday.
The deliveries of this model will begin in the third-quarter of 2015, which is later by few months than what was expected initially says Tesla.
Tesla forgoes short-term profit for long-term success
The delay is because the company wishes to spend more time on testing the new SUV before it releases it. “This … is a legitimate criticism of Tesla — we prefer to forgo revenue, rather than bring a product to market that does not delight customers,” Tesla CEO Elon Musk wrote in a letter to shareholders after the company’s third-quarter earnings results were announced.
The influence that Tesla Motors Inc (NASDAQ:TSLA) has on the automotive industry is greater than that suggested by its size. Last month, a note was written to the investors by Morgan Stanley analyst Adam Jonas saying, “Musk’s charisma, along with his ability to disrupt the entire auto industry, makes Tesla the world’s most important car company.”
Model S production down
Tesla also told that longer than expected time was taken by the upgrades made to the assembly line that were producing the Model S during summers and this led to the cuts in the production of 2,000 units. The shortfall thus created will be made up by Tesla in the fourth-quarter, but the units delivered this year will be 33,000, which are lower than the company’s previous forecast by 2,000.
“Being unable to increase production fast enough, not lack of demand, is a fair criticism of Tesla,” Musk wrote.
Tesla is also working on its so-called Gigafactory in Reno, Nev., which will have the potential of creating as many lithium ion batteries in 2022 as produced by the entire world in 2013. Musk forecasted that the Model S sedan will grow in popularity and this will lead to a 50% rise in orders and deliveries next year.