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Tesla announced a decline in second-quarter sales amid supply chain problems due to the pandemic

ADVICE – Tesla’s April-June sales fell to their quarterly lows since last fall due to supply chain issues and pandemic restrictions in China Its difficult production tram.

Company on saturday is revealed The company sold more than 254,000 cars and SUVs between April and June, down 18 percent from the first three months of this year and also far below the pace in the last quarter of last year.

The last time Tesla sold fewer cars globally was in the third quarter of 2021 when it delivered 241,000.

On Friday, the rest of the industry reported a 21% drop in sales for the second quarter as average prices for transportation vehicles soared to a record $45,844 amid soaring inflation. , according to J.D. Power.

Tesla’s sales slump could signal weaker second-quarter profit for Austin, Texas, which, the world’s top seller of battery-powered vehicles, has posted a net profit for nearly three years. . Tesla is expected to release full results for the April-June period on July 20.

Like many other stocks, Tesla stock has been hit hard this year. But the 35% drop in Tesla’s share price isn’t entirely tied to the company’s fortunes.

Tesla CEO Elon Musk also placed a $44 billion bid for Twitter, which he paused after complaining it had too many non-human spam bot users. Much of Tesla’s value erosion has occurred since Musk became Twitter’s largest shareholder and then launched a takeover bid that has raised concerns that he has too much on the plate. its already crowded beer.

Musk used his own Twitter account, which now has more than 100 million followers, to discuss the pandemic restrictions that forced the Shanghai factory to temporarily close during the quarter. Wedbush analyst Dan Ives estimates that more than 40% of Tesla’s sales come from China, and that the Shanghai factory has produced about 70,000 fewer vehicles due to the shutdown.

But Tesla signaled that things were getting better on Saturday, saying it produced more cars in June than in any other month in history. The company did not disclose the number of vehicles produced in June.

In the early hours of Saturday afternoon, Musk did not tweet about Tesla’s second-quarter sales. But he created a bit of a stir late Friday with the end of an unusually long nine days of silence on Twitter. His Friday tweets include one with him and his four children meeting with Pope Francis.

Tesla’s latest delivery numbers come a week after the publication of an interview with Musk in which he described the new factories in Austin and Berlin as a “smelter” that is losing billions of dollars because of the disruption. Supply chain problems are limiting the number of cars they can produce. .

In a May 30 interview with the Tesla owners club published last week, Musk said that running the plants in Berlin and Austin “is a big concern for us. Everything else is minor,” Musk said, but added that “it will all be fixed quickly. “

Musk also discussed getting salaried workers back into the office and how Tesla could cut 10% of its workforce due to a possible economic downturn.

Supply chain problems since the advent of COVID-19 two years ago have been particularly difficult for automakers, who buy parts from around the globe. The lack of the computer chip needed to run the car’s computer further complicates the problems for automakers and sends prices to new car skyrocketed.

When the pandemic broke out in the US in 2020, automakers had to close factories for eight weeks to prevent the virus from spreading. Several component companies have canceled semiconductor orders. At the same time, demand for laptops, tablets and game consoles skyrocketed as people stuck at home upgraded their devices.

By the time auto production resumed, chipmakers had shifted production to consumer goods, creating a shortage of weather-resistant automotive-grade chips. Even though Tesla has outperformed other automakers, the industry still can’t get enough chips.

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