July 7 (Reuters) - Tesla Inc
* Update - Tesla Q2 2017 vehicle production and deliveries
* Says in addition to Q2 deliveries, about 3,500 vehicles were in transit to customers at end of quarter
* Says 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
* Says Q2 production totaled 25,708 vehicles, bringing first half 2017 production to 51,126
* Says major factor affecting Q2 deliveries was severe production shortfall of 100 kwh battery packs, which are made using new technologies on new production lines
* Says about 3,500 vehicles will be counted as deliveries in Q3 2017
* Says confident that combined deliveries of Model S and Model X in second half of 2017 will likely exceed deliveries in first half of 2017
* Says until early June, production averaged about 40% below demand
* Says finally added a sufficient number of model x cars to test drive and display fleet
* Says "there appears to be substantial untapped sales potential for Model X"
* Says "production quality and field reliability of model x, for which Tesla has been fairly criticized, have improved dramatically"
* Says "it is now rare for a newly produced Model X to have initial quality problems" Source text for Eikon: Further company coverage: