Tesla said on Saturday that vehicle deliveries from April to June fell 18 percent from the first quarter of this year. This is a rare slowdown in the company caused by production problems in China.
Tesla sells more electric vehicles than any other company, and until recently it was expanding rapidly in China, Europe, and the United States as rising gasoline prices made battery power more attractive. Other automakers were envious of Tesla’s growth rate.
Tesla Delivered more than 254,000 vehicles In the quarter compared to 310,000 in the first quarter. This was the first quarterly delivery decline since the beginning of 2020, when the pandemic pushed down car sales globally.
Tesla’s sales would probably have been even higher without the pandemic-related shutdown and supply chain issues that were blocking operations at its factory in Shanghai. China has the largest automobile market in the world, accounting for about 40 percent of Tesla’s sales.
Wedbush Securities analysts Daniel Ives and John Katsingris said in a memo to investors last week that production in China was an “absolute disaster in April and May.”
Tesla said it had built more cars than ever in history in June, suggesting that it had overcome production problems.
Tesla has more orders it can meet, but demand can slow if the global economy hits a speed bump. Elon Musk, Tesla’s CEO, Bloomberg News In June, a recession is “inevitable at some point” and soon “more likely than not”. He told staff that the company would cut 10 percent of office workers.
Tesla is unlikely to match its growth from last year, with shipments up 90% to 940,000. According to Wedbush analysts, the 50% increase in 2022 is more realistic.
It was still an “impressive feat”, considering that China was “essentially closed for two months” in a Saturday memo.
The slowdown in growth is one of the factors that has prompted investors to reassess their potential to dominate Tesla’s automotive business. Tesla’s share has fallen by more than 40% since its peak in November, despite more buyers choosing electric vehicles because of their energy efficiency.
Electric vehicles are significantly less expensive to drive than fossil fuel vehicles, depending on local utility charges. According to the Environmental Protection Agency, the standard range for the Tesla Model 3 is 142 miles per gallon, with annual fuel costs of $ 450. By comparison, the Honda Accord with a petrol engine earns 33 miles to a gallon and costs $ 2,200 a year to refuel.
