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Despite waves of positive reviews for its new Model S electric sedan, Tesla said that teething problems with getting the cars out to customers means it won’t hit its original revenue targets for the year. The Californian startup is now expecting full-year revenue of about $400 million to $440 million, down from its original prediction of $560 million to $600 million.
Though Tesla completed development of its Model S on time, plans to deliver up to 5,000 units to customers by the end of the year is taking longer than originally hoped and may not be met. The high standards demanded by CEO Elon Musk, as well as the transformation from a niche manufacturer to a high-volume producer, are the primary causes for the delay.
“We have methodically increased our Model S production at a rate slower than we had earlier anticipated,” Tesla said in a U.S. Securities and Exchange Commission filing, obtained by Reuters. “Certain suppliers have experienced delays in meeting our demand and we continue to focus on supplier capabilities and constraints.”
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Currently, Tesla predicts it will deliver 200 to 225 Model S sedans by the end of the third quarter, with an additional 2,500 to 3000 units by the end of the year. Next year, Tesla is hoping to ramp up production to a rate of about 400 cars per week.
The company still has about 13,000 reserve orders for the car.
In the same securities filing, Tesla said it would like to raise an additional $150 million through a follow-on share offering. The company also said it has fully utilized its $465 million loan from the DOE.