Elon Musk’s Tesla has weathered troubling market conditions this year, posting a considerably good market performance this second quarter of 2022.
Tesla Achieves Highest Vehicle Production This 2nd Quarter of 2022
Tesla revealed this morning that it delivered 254,695 vehicles in the second quarter of 2022, falling slightly short of Street and FactSet consensus projections of 256,700 and 263,000, respectively. In the first quarter, Tesla manufactured 258,580 automobiles.
“In the second quarter, we produced over 258,000 vehicles and delivered over 254,000 vehicles, despite ongoing supply chain challenges and factory shutdowns beyond our control,” Tesla said in a press release.
“June 2022 was the highest vehicle production month in Tesla’s history.”
The Model S and Model X flagship cars were delivered in 16,162 units, while the Model 3 and Model Y accounted for 238,533 deliveries in Q2. Tesla overcame extremely challenging market conditions to have a great quarter.
Tesla’s Chinese manufacturing unit, Gigafactory Shanghai, was shut down for three weeks in April because of a COVID-19 epidemic in the region. After reopening in May, the plant was restored to full capacity.
The automaker rebounded as well, owing to a valiant effort in Fremont and Berlin. The Northern California factory achieved a record for units constructed in a week in early June, setting a record for production numbers. Gigafactory Berlin in Germany also achieved 1,000 unit output for the first time in its brief manufacturing history.
In terms of annual production stats, Tesla is still on track to produce more than 1,000,000 cars for the first time as a corporation, after falling just short last year with only 936,000 deliveries between Fremont and Shanghai. With Gigafactory Texas and Gigafactory Berlin rapidly ramping up production and Shanghai fully operational, Tesla will look to Q3 2022 to regain momentum and begin a fresh run of quarterly delivery increases. The manufacturer failed to grow deliveries for the first time in ten quarters in Q2 2022.
Tesla’s Deliveries Continue to Fall Amid China’s COVID shutdown
Tesla Inc delivered 17.9 percent fewer electric vehicles in the second quarter compared to the previous quarter as a result of China’s COVID 19-related stoppage, which impacted its manufacturing and supply chain.
With the lifting of the COVID-19 lockout, Tesla is ramping up production at its Shanghai facility, which will help enhance deliveries in the second half.
Elon Musk told the public last June that he had a “very awful feeling” about the economy, prompting him to lay off around 10% of Tesla’s workforce.
More layoffs are likely if the market does not improve quickly. Musk has stated that demand for Tesla automobiles remains robust, but supply-chain issues persist.
Tesla raised pricing for several of its models in the United States and China again in June, after Musk’s warning of substantial inflationary pressures in raw materials and logistics.
According to Refinitiv statistics, analysts anticipated Tesla to deliver 295,078 units between April and June. Due to China’s lengthy shutdown, some experts reduced their expectations to around 250,000.
Since the third quarter of 2020, the world’s most valuable carmaker has reported record deliveries every quarter, weathering pandemics and supply-chain disruptions better than most manufacturers.