Tesla's (TSLA) Revamped Model X/S Running Behind Schedule
Per media sources, Tesla TSLA has been facing production delays in refreshed Model X and S vehicles. So, customers who are looking to get their hands on these vehicles would have to wait as deliveries of these models have been pushed back by a couple of months.
The electric vehicle behemoth unveiled the revamped Model X/S this January and deliveries of the same were slated to begin within a few weeks. However, the company did not deliver any refreshed Model S or X in the first quarter. In fact, in the recent press release, Tesla notified that the Model S and X are still in the early stages of production, with new equipment having been deployed and tested in the first quarter.
While Tesla has not clarified reasons for the delay, it could be due to retooling of production lines. As it is, the firm had to temporarily suspend operations in the Fremont factory in California amid parts shortage. We know that automakers across the globe have been diverting their attention only to the most profitable models amid the global chip crunch. So it’s very much possible that the company has been rather focusing on the more popular vehicles including Model 3 and Y.
Whatever be the reason behind the delay of the refreshed Model S/X, the original delivery timeline of March-April is now being pushed to May-July. It should be noted here that new orders of the Model S Long Range or Plaid versions have a 10-14-week lead time, while orders of the new Model X will be delivered in the May-June time frame.
While Tesla has reportedly delayed Model X and S deliveries, it is riding high on robust demand for Model 3 and Y. In first-quarter 2021, Tesla produced 180,338 Model 3/Y vehicles and delivered 182,780 units of the same. Total deliveries were up 109% from the year-ago quarter and 2.3% sequentially. The Model Y was the primary catalyst for Tesla's vehicle sales growth for the quarter. The firm stated that it was encouraged by strong reception of the Model Y in China and noted that it was quickly progressing to full production capacity.
Tesla — which shares space with General Motors GM, Ford F and Volkswagen VWAGY — currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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