Electric car manufacturer Tesla Inc. recorded its first quarterly production decline in two years following the closure of a factory in Shanghai due to Covid-19.
Reported by Bloomberg, Tesla delivered 254,695 vehicles during the second quarter of 2022, down from 310,048 compared to the previous quarter (quarter-to-quarter/qtq), but still up from the same period in 2021 of 201,250.
The figure also missed the median forecast of analysts in a Bloomberg survey which estimated Tesla’s vehicle shipments to reach 261,181.
Tesla’s management said the company is currently facing ongoing supply chain challenges and factory closures are out of control. The shipment data is a closely watched indicator as it provides insight into the electric car maker’s likely financial performance.
The figure is also widely seen as a barometer for electric car demand in general, as the Austin, Texas-based company has led the market for battery-powered vehicles.
Chief Executive Officer Elon Musk warned against a “very difficult quarter” in his internal memo. But the closing of the Shanghai factory made the realized production level well below the company’s expectations.
Elon Musk said earlier this year that he expects production in the third and fourth quarters to rise sharply. He also said Tesla was on track to expand production to more than 1.5 million vehicles this year.
Tesla doesn’t divide global sales by geography, but the US and China have long been its biggest markets. The company currently produces Model S, X, 3 and Y cars and has plans to start production of pickups, semi trucks and roadsters.
Tesla will report its performance in the second quarter of 2022 on July 20. Meanwhile, Tesla’s annual general meeting of shareholders (AGMS) will be held on August 4.
