Why Tesla Is Canceling Some Model Y Deliveries In Germany

Tesla Inc (NASDAQ: TSLA) has canceled or delayed deliveries of the Model Y Performance variant for reservation holders in Germany due to defects in some vehicles, Teslarati reported on Sunday.

What Happened: Model Y Performance reservation holders from Germany began reporting cancellations on Saturday through the Tesla Fahrer and Freunde (TFF) online forum.

The Elon Musk-led company is expected to inform more reservation holders of cancellations this week. 

Only some Model Y vehicles are affected by the defects, as per Tesla employees in Germany, the report said, adding that a few reservation holders had already received their cars.  

The defect does not seem to affect Model Y Long Range vehicles or deliveries that are produced in Giga Shanghai and are delivered in Germany.

See Also: Elon Musk Says 2 Tesla Giga Factories Are Losing Billions With 'Hardly Any Output'

What Next? Tesla has reportedly rescheduled most of the canceled Model Y Performance deliveries for mid-July with some exceptions where new dates are pushed towards the later part of the year between August and November. 

Tesla’s recently opened Giga Berlin is still ramping up production and has reportedly started making 1,000 vehicles earlier this month. Giga Berlin manufactures only Model Y vehicles at the moment. 

Price Action: Tesla closed 4.5% higher at $737.1 on Friday, according to data from Benzinga Pro.