So, Tesla Motors just announced its delivery figures for the Tesla Model S and Model X today (yes today). The figures fell slightly below management’s prior guidance, but the difference in order shipments were fairly marginal.In Q1’16 Tesla reported deliveries of 14,820 vehicles with a split of 12,420 Model S and 2,400 Model X. In Q2’16 Tesla reported deliveries of roughly 14,370 vehicles with a split of 9,745 Model S and 4,625 Model X.This translates into total deliveries of 29,190 vehicles, Tesla had 2,615 vehicles in transit. When combining the outlook for 2,200 average deliveries/week in Q3 (26,400) and 2,400 average deliveries/week in Q4 (28,800) management is implying a figure of 84,390 vehicles. So, while Q2 figures dropped, Tesla’s 2H’16 estimates pulled ahead of consensus, as I anticipated 80,000 vehicle deliveries in FY’16. Management guidance implies revenue of $8.96 billion in FY’16 based on current average ASPs, which is higher than the consensus revenue estimate of $8.54 billion. My revenue estimate prior to management guidance was $8.5 billion for FY’16. The referenced figures for revenue are non-GAAP excluding provisions for lease based accounting. That being the case, I believe the muted response from investors is mostly driven by broad market selling as outlook was above consensus, but Q2’16 figures were below consensus. In other words, Tesla played the expectation game with mixed results, which was why the shares fell by a couple points following the report. The volatility wasn’t too bad (since we are talking about TSLA). I think investors can get opportunistic here assuming production continues to ramp, but execution is fraught with risks as the quarter-to-quarter variance on deliveries could vary from guidance by 2,000 to 4,000 units. Assuming Tesla is able to ramp its production we should see figures exceed 80,000, which would dampen the negative perception of weak production execution for the Model 3 as investors aren't anticipating deliveries of 500k units in FY'18. Tesla would need to deliver 82k to 84k units in FY'16 to regain investor confidence.