Business

Tesla deliveries fall with temporary closure of China factory

Drop bigger than expected, say analysts, as Shanghai’s strict Covid-19 lockdown hits firm hard

Updated 4 years ago · Published on 03 Jul 2022 8:30PM

Tesla deliveries fall with temporary closure of China factory
A view of Tesla’s factory in Shanghai, China, which – due to strict Covid-19 lockdown measures – has been closed for several weeks, affecting the firm’s supply chains. – AFP pic, July 3, 2022

NEW YORK – Tesla’s deliveries of electric vehicles fell in the second quarter compared to the previous one due mainly to a weeks-long closure of its factory in China, the company said yesterday.

Elon Musk’s enterprise delivered 254,695 vehicles from April to June, it said in a statement.

The figure is 27% more than the same period a year ago but down 18% from the January-to-March quarter of 2022 and the first such decline in more than two years.

This marks a disappointment for a company that says it is posting strong growth, touting the opening of two new factories this year, in Germany and Texas.

The drop in deliveries was bigger than that anticipated by analysts, who had expected 264,000 vehicles to be handed over to buyers, according to FactSet, a financial data and software company.

Tesla warned in April that supply chain snarls hitting the auto industry in general would keep disrupting the company’s production until the end of the year.

Still, it delivered a record number of cars in the first quarter of 2022.

But in the second quarter Tesla had to grapple with the closure of its Shanghai factory for several weeks because of strict lockdown measures in China due to a surge in Covid-19 cases.

In its statement yesterday the company said it produced 258,000 vehicles in the second quarter “despite ongoing supply chain challenges and factory shutdowns beyond our control.”

It also said June was the highest vehicle production month in Tesla’s history.

Elsewhere in the industry, General Motors and Toyota saw their second quarter sales in the United States drop by 15% and 23% respectively, compared to the same period in 2021. – AFP, July 3, 2022

Related News

Malaysia / 1d

Billionaire numbers reach record high as wealth remains concentrated

Malaysia / 5d

Anwar backs One China policy, says Beijing can pursue reunification

Malaysia / 5d

Disturbed woman at KLIA taken to hospital, had forgotten to take medication

Malaysia / 5d

Woman, believed to be foreigner, allegedly causes disturbance at KLIA (video)

Malaysia / 4w

12 officers, police personnel arrested in RM2 million extortion case

Malaysia / 1mth

Kedah MB’s “Cina ada China, India ada India” remark draws criticism over citizenship narrative

Spotlight

Trump’s North Korea gamble deepens Asia’s doubts over US alliances

Malaysia

Rayer denies involvement in 'Maha Kali Red Rally', claims name and photo misused

Malaysia

E-Hailing driver charged with attempted murder after allegedly setting worker on fire

Business

Nation’s economic outlook strengthens as leading index signals continued growth

Malaysia

‘No parent wants her child to be remembered this way,’ says mother of 14-year-old Keziah

Malaysia

RM1.96m Penang land probe: Two ‘Datuks’ remain in custody

Business

K8 cargo: Businessman seeks clarification from MOF, Customs, Petronas

Malaysia

PH leaders hold talks as Melaka election plans take shape

Malaysia

Bersama rejects political alliances, vows to go solo in Melaka state election

You may be interested

Business

Nation’s economic outlook strengthens as leading index signals continued growth

Business

Govt rules out RM7.5b Datasonic takeover amid identity security concerns

Business

Oil prices pull back after rally as markets brace for tougher Iran sanctions

Business

K8 cargo: Businessman seeks clarification from MOF, Customs, Petronas

Business

Matrix Concepts records RM416.7m in 1Q27 sales as geographic diversification gains traction