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Tesla delivered 22,000 vehicles in second quarter, blames 'severe production shortfall' of battery packs

  • Tesla delivered just over 22,000 vehicles in the second quarter, down from 25,000 in the previous quarter.
  • The electric automaker blamed a severe production shortfall of 100 kWh battery packs.
An employee works on a Telsa Motors Model S sedan as it makes its way along an assembly line at company's assembly plant in Fremont, California.
Noah Berger | Bloomberg | Getty Images
An employee works on a Telsa Motors Model S sedan as it makes its way along an assembly line at company's assembly plant in Fremont, California.

Tesla delivered just more than 22,000 vehicles in the second quarter, down from 25,000 in the previous quarter.

The electric car maker blamed a severe production shortfall of 100 kilowatt-hour battery packs. The company said production average 40 percent below demand, until early June. But once the issue was resolved, Tesla said production speed rebounded.

Despite the slowdown, deliveries were up 53 percent from the same period a year earlier.

Of the over 22,000 vehicles delivered, 12,000 were Model S cars and just over 10,000 were Model X vehicles. Tesla produced 25,708 vehicles in the quarter, bringing production for the first half of the year to 51,126.

Tesla also said it added more Model X cars to its test drive and display fleet because its stores had been running with too few, or in some cases, none at all.

"There appears to be substantial untapped sales potential for Model X," the company said.

The automaker also claimed that "production quality and field reliability of the Model X, for which Tesla has been fairly criticized, have improved dramatically." Tesla said that it's now "rare" for a new Model X to have "initial quality problems."

The first production of Tesla's Model 3 that meets regulatory requirements will be finished this week and deliveries will start July 28.

Tesla shares have surged 65 percent so far this year amid lofty expectations for the Model 3, the automaker's first mass-market car.

Delivery numbers are conservative, the company warned, saying final numbers could vary up to half a percent. For the second half of the year, Tesla said deliveries will "likely exceed" those in the first half of the year.