Tesla Motors (NASDAQ:TSLA) shares plunged in Tuesday trading after the company filed documents with the Securities and Exchange Commission that contained warnings about its ability to meet production and vehicle delivery targets.
In the documents, the company said that it had boosted production of is Model S, but “at a rate slower than we had earlier anticipated.” Tesla attributed its production problems to delays by suppliers in delivering crucial components, Business Insider noted.
Shares of Tesla Motors were down more than 9% in mid-day trading, rebounding somewhat after falling 12% Tuesday morning.
Deliveries of the Model S were projected to be four to five weeks slower than previous estimates. The company says it will deliver between 200 and 225 Model S vehicles to customers in the third quarter, and between 2,500 and 3,000 vehicles in the fourth quarter.
While Tesla indicated that it was working with its suppliers to resolve the problems, it forecast continuing delays.
The company also reduced its revenue outlook for the year, due to the lower number of vehicles it believes it can deliver to customers. It estimates revenue of between $400 and $440 million for 2012, with third quarter revenue coming in between $44 million and $46 million.