During Q2, Tesla experienced its first sequential decline in vehicle deliveries in more than two years, but it was not due to a lack of demand.
The main reasons for the 18 percent drop in the second quarter were Covid-related shutdowns in China and parts shortages.
Over the weekend, the electric vehicle behemoth announced that it had delivered 254,695 vehicles from April to June.
While this represents a 26% increase over the 201,250 vehicles delivered in the second quarter of 2021, the figure for the previous quarter (Q1 2022) was 310,048.
Wall Street analysts expected 350,000 Tesla deliveries in the second quarter, but that number was revised after Elon Musk said it would be closer to Q1 levels after the impact of the Chinese shutdowns was considered.
Tesla’s Shanghai factory produced roughly half of the company’s output last year, but a resurgence of cases, combined with China’s zero-tolerance approach to outbreaks, caused production to be temporarily halted at the facility and those of its suppliers.
To make up for the shortfall, Tesla increased output at its Freemont, California, plant. Tesla stated that the Covid-related/supply issues subsided near the end of the quarter, and that the company produced the highest monthly production volume in its history in June.
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