The recently launched all-electric Model S by Tesla Motors is in severe criticism by the analysts, as it seems like the company will not fulfill its promise of delivering 5,000 cars by the end of this year.
All-Electric Model S hit the market on June 22, and the first ten cars have been handed over to its owners, and according to company’s plans it will successfully deliver 5,000 cars later this year, but that seems increasingly doubtful. According to report, Tesla fails to deliver any car since June.
The company says more than 12,000 people have applied for the new model, meaning it would take one more year to meet the customer’s requirements.
“The production steps up in a geometric and exponential way,” Tesla CEO Elon Musk told analysts in a conference call, “the production ramp is this sharp S curve. In 2013 we’ll produce at least 20,000 units. That’s all that matters.”
Musk said the holdup is because of the in-depth investigation on the cars’ features. He personally inspects many units, and claims the delays are due to the inferior parts provided by the suppliers. He also sent back some of the parts to the suppliers which failed to satisfy him.
“There are these little things that are extremely annoying,” Musk told the analysts, “they are mostly interior, soft trim issues.”
According to Musk, the company has made 40 production cars up till now. Tesla sent a letter to shareholders and said it make 500 more cars in the third quarter, and the remaining 5,000 cars in the fourth quarter. At the moment, the company is making 10 cars a week, and in order to achieve its target, it has to make 375 cars in a week. Well, let’s see how the company formulate its strategy to meet the customers’ requirements.
This time, Tesla would not take help from dealers to sell their cars, as the company is planning to showcase their cars on mall and sell them through retail stores.