Sunday, April 21, 2024

Tesla pulls out an unpleasant surprise as its factory shuts down in China

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Supplies collapsed Tesla electric cars The company announced on Saturday that the second quarter of this year, compared to the previous period, was affected by the closure of a factory in China that had been operating for several weeks.

Elon Musk’s company, the world’s richest man, delivered 254,695 cars between April and June, AFP reported.

The figure represents an increase of more than 27% compared to the same period last year, but is 18% lower than in the first quarter, and the first such decline in more than two years.

The decline is disappointing for Tesla, which has always said it is posting strong growth, fueled by the opening of two new plants this year in Germany and Texas.

The number of vehicles delivered fell short of analysts’ expectations of 264,000 vehicles in the second quarter, according to FactSet, a software and financial data firm.

Tesla had warned in April of a supply chain crisis affecting the auto industry in general, and it was expected to halt its production operations until the end of the year.

However, Tesla has delivered the highest number of cars in the first quarter of 2022.

But in the second quarter, the company suffered a setback as its factory in Shanghai closed for several weeks due to heavy lockdown measures in China due to high number of “Covid-19” infections.

The company said in its announcement on Saturday that it produced 258,000 cars in the second quarter of the year, “despite ongoing challenges from supply chains and plant closures beyond our control.”

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He added that June was the highest production month in Tesla’s history.

On the other hand, General Motors and Toyota reported a 15% and 23% decline in second-quarter sales in the US, respectively, compared to the same period in 2021.

Nadia Barnett
Nadia Barnett
"Award-winning beer geek. Extreme coffeeaholic. Introvert. Avid travel specialist. Hipster-friendly communicator."

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