Tesla deliveries drop due to China Covid shutdown and supply shortage

Parts shortages and pandemic-related production shutdowns at Tesla’s Shanghai plant have driven the electric carmaker’s latest global deliveries, according to figures released on Saturday. decline.

American car manufacturer speak it delivered 254,000 vehicles in the second quarter. Despite a 27% increase from a year ago, China’s outages were followed by the first consecutive quarterly decline in more than two years.

The delivery figure was far below the 350,000 figure Wall Street had expected at the start of the quarter, although analysts began revising their forecasts in late April after chief executive Elon Musk warns that this number is likely to approximate the 310,000 level of the first quarter.

Forecasts have fallen again in recent days as Wall Street has sought to predict the eventual impact of the China shutdown, which continued sporadically throughout the quarter. The Shanghai factory produced about half of the company’s output last year. Since late March, Tesla has been trying to ramp up production at its main US plant in Fremont to make up some of the shortfall.

Tesla said the latest delivery figures reflect “ongoing supply chain challenges and plant shutdowns beyond our control”. It also indicated that challenges eased towards the end of the quarter, with the highest monthly production volume in the company’s history in June.

Until its recent failure in China, Tesla had managed to resist many of the supply chain pressures that have plagued other automakers since last year. But investor confidence has waned since Musk’s upbeat forecast three months ago, wiping out 30% of the stock price since.

Earlier this month, Musk said the company would cut 10% of its salaried workforce, after rapidly increasing staffing over the past two years.

The latest figures show Tesla with total deliveries of 564,000 in the first half of the year, up 46% year-on-year in 2021. That would lead to a steep climb if the company hopes to hit 1. , 5 million revenue for the whole year. delivery target that Musk set in April.

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