Tesla deliveries drop 17.9% as China lockdown impacts

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Tesla delivered 17.9% fewer electric vehicles in the second quarter compared to the previous quarter as China’s Covid-19-related shutdown disrupted its production and supply chain.

The world’s biggest electric car maker said on Saturday it had delivered 254,695 vehicles in the April-June period, compared with 310,048 vehicles in the previous quarter, ending a nearly two-year period of record quarterly deliveries.

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The resurgence of Covid-19 cases in China has forced Tesla to temporarily suspend production at its factory in Shanghai and has also affected supplier facilities in the country.

Tesla is ramping up production at the Shanghai factory as the Covid-19 lockdown eases, which will help boost deliveries in the second half.

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In early June, CEO Elon Musk told executives he had a “very bad feeling” about the economy and needed to cut about 10% of the electric car maker’s staff.

Musk said demand for Tesla vehicles remains strong, but there are still supply chain challenges.

In June, Tesla again raised prices for some of its models in the United States and China after Musk warned of significant inflationary pressure on raw materials and logistics.

June 2022 was the highest vehicle production month in the company’s history, Tesla said in a press release.

Analysts had expected Tesla to deliver 295,078 vehicles in the April-June period, according to Refinitiv data. Several analysts further reduced their estimates to around 250,000 due to China’s prolonged lockdown.

Source: CNN Brasil

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