Tesla Model X deliveries delays because of its 'hubris'

Tesla Motors blamed its own "hubris"  Monday as a factor for supplier parts shortages that severely initially reduced the number of its new Model X crossovers that it was hoping to deliver in the first quarter.

The automaker, which has its auto plant in Fremont, Calif., says it delivered 12,420 of its Model S luxury electric sedans in the first quarter, but only 2,400 of its new Model X crossover.

"The Q1 delivery count was impacted by severe Model X supplier parts shortages in January and February that lasted much longer than initially expected," the company said in a statement. "Once these issues were resolved, production and delivery rates improved dramatically. By the last full week of March, the build rate rose to 750 Model X vehicles per week, however many of these vehicles were built too late to be delivered to their owners before end of quarter."

Tesla says it is on track to deliver 80,000 to 90,000 new vehicles this year.

The shortage involved only about six out of 8,000 unique parts that go into the Model X, which is distinguished among SUV's by its unique rear upward-opening gullwing-style doors. Tesla did not specify which parts were in short supply.

In unusually frank terms, the automaker said "the root causes of the parts shortages were: Tesla’s hubris in adding far too much new technology to the Model X in version 1, insufficient supplier capability validation, and Tesla not having broad enough internal capability to manufacture the parts in-house."

CEO Elon Musk told reporters the evening that the first Model X was delivered last year that the company had erred by putting too many fancy features into the vehicle for its debut -- instead of adding them gradually over time. More features add to manufacturing complexity. Besides its unique doors, the Model X has one of the largest windshields of any vehicle -- so large that it almost becomes a sunroof as well.

Tesla says it has addressed its delivery shortcomings and assures they will not be repeated when the Model 3 sedan, the $35,000 sedan it revealed last week, launches late next year.

Analyst James Albertine of Stifel says in a note to investors that he is concerned that the Model X is an "over-engineered product" that presents a challenge for Tesla. The deliveries come in "a sobering report in light of the impressive orders for the upcoming Model 3."