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Tesla misses delivery target, citing company 'hubris'

Tesla misses delivery target, citing company 'hubris'
Tesla Motors unveils the new lower-priced Model 3 sedan at the Tesla Motors design studio in Hawthorne. (Justin Prichard / AP)

Tesla Motors reminded customers Monday that it sells cars other than the Model 3, and that it sometimes has trouble meeting expectations.

The automaker announced that it delivered 14,820 luxury vehicles in the first quarter of 2016, falling short of the expected 16,000 deliveries. The tally includes 12,420 Model S sedans and 2,400 Model X SUVs.

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The stock price for Tesla Motors dropped about 3% in after-hours trading, after several days of gains tied to the frenzy of the Model 3 release.

The electric vehicle maker has taken about 300,000 reservations on its Model 3 sedan, which will have a starting price of about $35,000, since pre-sales began Thursday.

Chief Executive Elon Musk tweeted Saturday that the company would need to build a plant in Europe to keep up with demand. He added that the company would focus on accelerating the manufacturing process for the new vehicle.

The company acknowledged first-quarter deliveries of the S and X were slowed by shortages of parts caused by "Tesla's hubris." The Palo Alto automaker added too much new technology to its luxury SUV, it said in a statement, and neither the company nor its suppliers could manufacture enough key parts. The parts shortages were limited to a half dozen items in a vehicle with more than 8,000 pieces.

Tesla said it would fix the root problems before the Model 3 launch. The first, lower-priced sedans are expected to be delivered in late 2017.

The company expects to deliver between 80,000 and 90,000 vehicles this year.

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