Tesla deliveries drop amid China Covid shutdowns and supply shortages

Parts shortages and coronavirus-related production shutdowns at Tesla’s Shanghai plant have led to a slump in deliveries of the electric car maker’s latest global vehicle, data released on Saturday showed.

American automaker Say It delivered 254,000 vehicles in the second quarter. Despite a 27% increase from a year ago, the shutdown in China brought the first quarterly quarterly decline in more than two years.

The delivery figure was well below the 350,000 Wall Street expected at the start of the quarter, although analysts began lowering forecasts in late April after CEO Elon Musk warned the number could be roughly in line with 310,000. the first season.

That forecast has dipped again in recent days as Wall Street tries to predict the eventual impact of the shutdown in China, which has occasionally persisted throughout the quarter. Last year, the Shanghai plant accounted for about half of the company’s output. Since the end of March, Tesla has been working to increase output at its main U.S. factory in Fremont to make up some of the shortfall.

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

Until the recent setback in China, Tesla has managed to resist many of the supply chain pressures that have hit other automakers since last year. But investor confidence has waned since Musk’s gloomy forecast three months ago, and its shares have fallen 30% since then.

Musk said earlier this month that the company would cut 10% of its salaried workforce after a rapid increase in headcount over the past two years.

The latest figures show that Tesla delivered a total of 564,000 vehicles in the first half of the year, up 46% from the same period in 2021. If the company has any hope of hitting 1.5 million full-year sales, it’s going to be a steep climb. The delivery target set by Musk in April.

Source link