Tesla Deliveries Dipped in Quarter, Snapping Two-Year Streak

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(Bloomberg) — Tesla Inc. delivered 254,695 cars worldwide in the three months to June, snapping a two-year streak of quarter-on-quarter gains, as a Covid-related shutdown at its factory in Shanghai crimped production.

The results, posted Saturday, missed a forecast of 261,181 vehicle deliveries based on an average of analyst estimates compiled by Bloomberg. That is less than the record 310,048 cars Tesla delivered in the previous three months, but above the 201,250 from the same quarter a year ago.

Tesla faces “ongoing supply chain challenges and factory shutdowns beyond our control,” it said in a statement.

The delivery data is a closely watched indicator for Tesla since it provides insights into the electric-car maker’s likely financial performance. The figure also is widely seen as a barometer for EV demand generally, since the Austin, Texas-based company has led the market for battery powered vehicles.

‘Very Tough Quarter’

Chief Executive Officer Elon Musk had warned of a “very tough quarter” in an internal memo that was seen by Bloomberg. But the Shanghai shutdown may have made the most recent quarter’s tally something of an outlier. Musk said earlier this year that he expects production in the third and fourth quarters will be “substantially higher” and that Tesla is on track to expand production to more than 1.5 million vehicles this year.

Tesla does not break out global sales by geography, but the US and China have long been its largest markets. The company currently makes the Model S, X, 3 and Y vehicles and has plans to start production of a pickup, semi truck and roadster.

In the waning days of the quarter, while Musk maintained his Twitter silence, other executives delivered cars to customers, including design chief Franz von Holzhausen. The end of the quarter has often been an all-hands-on-deck situation, with employees from across the company pitching in to help deliver cars in the final hours.

Tesla will report second-quarter earnings after the market close on July 20, the company said Saturday. The annual meeting of shareholder will be Aug. 4.

©2022 Bloomberg L.P.

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