Tesla reported second-quarter results on Wednesday that beat Wall Street expectations, but it lowered its deliveries guidance for the year.
The company said it saw a quarterly loss of 48 cents per share on $1.20 billion in adjusted revenue. Analysts expected Tesla to report a loss of 60 cents per share on $1.18 billion in revenue, according to a consensus estimate from Thomson Reuters.
The company lowered its full-year delivery guidance—a key figure—to "between 50,000 and 55,000." Tesla said in May that it expected about 55,000 for its Model S and Model X combined.
"While our equipment installation and final testing of Model X is going well, there are many dependencies that could influence our Q4 production and deliveries," the company said in its Wednesday shareholder letter, adding that possible issues are in part because "Model S and Model X are produced on the same general assembly line, (and) Model X production challenges could slow Model S production."
"Simply put, in a choice between a great product or hitting quarterly numbers, we will take the former," the letter explained.
Shares in the company fell more than 7 percent in after-hours trading after the earnings release, but then pared some of those losses. (Click here to track Tesla shares after the report.)