(MENAFN- Baystreet.ca)
Tesla Q2 Deliveries Fall 18% Due To Production Shutdowns In China
Tesla (TSLA) said that it delivered 17.9% fewer electric vehicles in this year's second quarter as
China's COVID-19 lockdowns disrupted its production schedule and supply chains.
The world's largest manufacturer of electric vehicles reported that it delivered 254,695 vehicles
in the April through June period, compared with 310,048 vehicles in this year's first quarter,
ending a nearly two-year streak of record quarterly deliveries.
Analysts had expected Tesla to report deliveries of 295,078 vehicles for the April to June period,
according to Refinitiv data.
A resurgence in COVID-19 shutdowns throughout China forced Tesla to temporarily suspend
production at its Shanghai factory, which led to the missed delivery target, according to the
company.
Last month, Tesla chief executive officer (CEO) Elon Musk said that he had a“super bad
feeling” about the global economy and announced plans to cut 10% of staff at the company.
Also in June, Tesla hiked prices for some of its electric vehicle models in the U.S. and China
after Musk warned of significant inflationary pressure in raw materials and logistics.
China has been instrumental in Tesla's rapid increase in vehicle production, with the low-cost,
Shanghai factory producing roughly half of the company's cars delivered globally in 2021.
Tesla stock is down 43% year to date at $681.79 U.S. per share.
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