Tesla deliveries witness an 18% drop after Chinese factory shut down

Recent statistics showcase that Tesla, Inc. has reportedly delivered 254,695 electric vehicles across the globe in the second quarter which amounts to nearly 18% lesser sales as compared to that of the past year.

Supply chain constraints due to China’s extended lockdown following the reappearance of the coronavirus in the country, and several issues restricting the opening of factories in Austin and Berlin have contributed to this fall over the past few months.

Notably, this is the first time in two years that Tesla deliveries have failed to reach the mark repeatedly over subsequent quarters, though the company witnessed a jump of nearly 26.5% in the second quarter of last year.

The rapidly diminishing output sheds light on a complex supply chain problem in the business while notifying the importance of the Shanghai factory in bolstering business activity.

For the uninitiated, the company had to shut operations multiple times in the city since March, in sync with the measures taken by the Chinese government to curtail the spread of the virus.

On July 2nd, the company issued a statement claiming that it manufactured 258,580 EVs which accounts for a 5% reduction from the previous year’s production capacity which amounted to 305, 407 vehicles.

Most of the vehicles produced and delivered over the past few quarters were Model 3 and Model Ys. Figuratively only 16,411 of the manufactured vehicles were the older Model S and Model X vehicles.

Notably, Tesla Inc. has claimed that June 2022 was the month that witnessed the highest production in the history of the automotive giant.

Despite achieving this feat, several automakers including Tesla continue to face challenges while trying to bridge the gap between supply and demand as several hindrances persist, thereby drastically affecting their revenue scope across the globe.

Source Credits –

https://techcrunch.com/2022/07/02/tesla-ev-deliveries-fall-nearly-18-in-second-quarter-following-china-factory-shutdown/

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