Parts shortages and production shutdowns at Tesla’s Shanghai factory caused by the pandemic have caused a big drop in deliveries of the electric carmaker’s latest global vehicles, according to data released on Saturday.
American car manufacturer he said it delivered 254,000 vehicles in the second quarter. Although up 27 percent from a year earlier, China’s shutdowns marked the first consecutive quarterly decline in more than two years.
The shipment figure was well below the 350,000 that Wall Street had expected at the start of the quarter, although analysts began to cut their forecasts in late April after CEO Elon Musk warned that the figure was likely to be around the 310,000 level in the first quarter.
Forecasts have fallen again in recent days as Wall Street tries to predict the ultimate impact of China’s shutdown, which has continued sporadically throughout the quarter. The Shanghai factory produced about half of the company’s output last year. Since the end of March, Tesla has been trying to increase production at its main US factory in Fremont to make up for some of the shortfall.
Tesla said the latest delivery figures reflect “ongoing supply chain challenges and factory closings beyond our control.” It also indicated that challenges eased at the end of the quarter, with the highest monthly production volume in the company’s history in June.
Until the recent setback in China, Tesla has been able to resist many of the supply chain pressures that have hit other automakers since last year. But investor confidence has weakened since Musk’s dovish forecast three months ago, wiping 30 percent off the share price since then.
Musk said earlier this month that the company would cut 10 percent of its paid workforce, following a rapid increase in headcount over the past two years.
The latest numbers left Tesla with total deliveries of 564,000 in the first half of the year, up 46 percent from the same period in 2021. That left a steep climb if the company has any hope of hitting its 1.5 million full-year delivery target Musk posted in April.