Tesla Q2 deliveries drop to 254,695 as China shutdown takes its toll

You’re here (TSLA) – Get the report from Tesla Inc. posted weaker-than-expected second-quarter deliveries, the automaker detailed on Saturday, as the impact of factory closures in China and supply chain disruptions around the world weighed on production.

Tesla delivered 254,695 new cars in the three months to June, the company said in a statement, up 26.7% from a year ago but down 17.7% from the record of 310,048 reached in the first three months of last year. Analysts were originally looking for a total of around 295,000, but that estimate has been cut sharply over the past week following reports of a Tesla-gathered consensus of around 256,000.

Tesla delivered 238,533 units of its Model 3 and Model &, as well as 16,162 units of its Model S and Model X, the report said.

Production fell to 258,580 vehicles from 305,407 in the first quarter and 305,840 in the last three months of last year, partly due to supply chain disruptions and Covid-related closures at its factory from Shanghai.

“In the second quarter, we produced more than 258,000 vehicles and delivered more than 254,000 vehicles, despite ongoing supply chain challenges and plant closures beyond our control,” Tesla said in a statement. “June 2022 was the highest vehicle production month in Tesla history.”

Tesla stock closed at $681.79 each Friday in New York, after rising 1.24% during the session to reduce the stock’s year-to-date decline to around 35.5. %.

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Tesla lost about 22 days of production at its key Shanghai gigafactory due to China’s “zero Covid” lockdown policies in the country’s biggest city during the second quarter.

Supply chain disruptions and soaring input costs have also weighed on Tesla’s overall production rates, forcing the group to both raise prices for current models and consider near-term cost cutting. as it heads into the final months of the year.

Raw material prices, as well as labor costs related to overall production cycles, have risen steadily over the past year, while prices for nickel – a crucial element in the manufacture of EV batteries – have risen about 30% so far this year to about $25,500 per year. tonne on the London Metals Exchange, while battery-grade lithium carbonate prices are up around 60% from levels at the start of 2021.

Tesla told investors in April that “the inflationary impact on our cost structure has contributed to price adjustments for our products, despite a continued focus on reducing our manufacturing costs where possible.

Earlier this week, General Motors (GM) – Get General Motors company report warned that chip shortages and supply chain issues were leading to production delays that affected around 100,000 vehicles, although the automaker reiterated its full-year profit forecast.

GM said the 96,000 vehicles, which are in the group’s larger inventory, were missing some components that will delay their final sale. Still, GM said second-quarter U.S. sales were down 15.4%, though that tally was lower than Street’s estimate of about 17.1%.

Tesla announced that it will release its second quarter results on Wednesday, July 20.

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