Tesla says it delivered just over 22,000 vehicles in Q2, of which just over 12,000 were Model S and just over 10,000 were Model X. This represents a 53% increase over Q2 2016, but was down on the first quarter.

Total vehicle deliveries in the first half of 2017 were approximately 47,100, so volume fell back from the 25,000 units achieved in the first quarter.

The company said that the major factor affecting Tesla‘s Q2 deliveries was a ‘severe production shortfall of 100 kWh battery packs, which are made using new technologies on new production lines’.

The technology challenge grows exponentially with energy density, it said. Until early June, production averaged about 40% below demand. Once this was resolved, June orders and deliveries were strong, ranking as one of the best in Tesla history, Tesla maintains.

Tesla said it is confident that combined deliveries of Model S and Model X in the second half of 2017 will likely exceed deliveries in the first half of 2017.

Q2 production totalled 25,708 vehicles, bringing first half 2017 production to 51,126.

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By GlobalData

Tesla said it added fully loaded, newly built cars to its service loaner fleet.

It also added a number of Model X cars to the test drive and display fleet.

Tesla said ‘it should also be noted that production quality and field reliability of the Model X, for which Tesla has been fairly criticized, have improved dramatically. It is now rare for a newly produced Model X to have initial quality problems’.

The first certified production Model 3 that meets all regulatory requirements will be completed this week, with a handover of 30 customer cars at the Fremont, California, factory on July 28.

Tesla is planning to ramp-up overall output to 500,000 units in 2018, boosted by the impact of the Model 3.

See also: Elon Musk says Model 3 production starts this week