Tesla posts a rare decline in sales in the second quarter

Tesla posts a rare decline in sales in the second quarter

Electric vehicle manufacturers reported that second-quarter finished vehicle sales fell by nearly 18% to about 255,000 units compared to the first three months of the year. Production was down 15% to 259,000.

Company’s Shanghai factory Closed for several weeks in April Blocking rules In the city aimed at fighting the surge in Covid incidents. The problem of getting parts from Tesla’s suppliers also limited Tesla’s production even after the factory was reopened. According to Dan Ives, a technical analyst at Wedbush Securities, the blockade could bring Tesla’s production to about 70,000 units this quarter.

According to the company’s statement, the problems Tesla faced at the beginning of the quarter are now largely behind.

“Despite ongoing supply chain challenges and factory closures beyond our control, June 2022 was the best car production month in Tesla’s history,” he said.

Tesla does not publish a geographic breakdown of sales in its monthly sales and production reports. According to the company’s filing, only 45% of last year’s sales came from US sales.Industry-wide car sales in much of China Ground to stop Most of the quarter due to the blockade. Most of Tesla’s non-US sales came from vehicles manufactured in Shanghai.

Still, it was the first time since early 2020 that the company had either sales or production declines compared to the previous quarter.Its sales decline It was also due to a blockade associated with Covid’s early global outbreaks.

Such declines are rare in fast-growing companies.Even if production and sales decline compared to the first quarter In 2022, both measurements rose from levels a year ago. This is because the company increased production by 25% and delivery by 27%.

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Analysts surveyed by Refinitiv predicted that the company would see a 46% increase in quarterly revenue and a 51% increase in adjusted profit compared to a year ago. A gradual increase in sales year-on-year could ease these expectations and put more pressure on the company’s stock price. Tesla’s share has fallen 35% so far this year.

The company opened two new factories this quarter. One is in Germany and the other is in Texas. But the problem of increasing production at these factories is The production at those factories was “small” In the first two months of the quarter, Tesla CEO Elon Musk said in a recent interview.

Source: www.cnn.com

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