Tesla’s quarterly EV deliveries fall

Production disrupted by Covid shutdown in China


Reuters July 03, 2022
A Tesla vehicle drives past Tesla's primary vehicle factory after CEO Elon Musk announced he was defying local officials' coronavirus disease (COVID-19) restrictions by reopening the plant in Fremont, California, U.S. May 11, 2020. PHOTO: REUTERS

SAN FRANCISCO:

Tesla Inc delivered 17.9% fewer electric vehicles in the second quarter from 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 that it delivered 254,695 vehicles in the April to June period, compared with 310,048 vehicles in the preceding quarter, ending a nearly two-year-long run of record
quarterly deliveries.

Resurgence in Covid-19 cases in China had forced Tesla to temporarily suspend production at its Shanghai factory and also affected suppliers’ facilities in the country.

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

Early in June, Chief Executive Officer Elon Musk told executives that he had a “super bad feeling” about the economy and needed to cut about 10% of staff at the electric car maker.

Musk has said demand for Tesla vehicles remains strong, but supply-chain challenges still remain.

Published in The Express Tribune, July 3rd, 2022.

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