Supply chains hit the auto sector… Tesla closes its factory in China


The number of Tesla electric cars delivered in the second quarter of the year decreased compared to the previous period, mainly due to the weeks-long closure of its factory in China, the company announced Saturday.

The Elon Musk-owned company delivered 254,695 vehicles between April and June, it said in a statement. The number represents an increase of more than 27 percent compared to the same period last year, but 18 percent less than the quarter from January to March 2022, and the first decline of its kind in more than two years.

This is a disappointment for the company, which says it is registering strong growth and is promoting the opening of two new plants this year in Germany and Texas. The drop in the number of cars delivered was larger than analysts’ expectations, who had reported 264,000 vehicles being delivered to buyers, according to Factset, a software and financial data company. While a queue of electric Tesla cars waited their turn at the electric charging station in California, USA.

Tesla had warned in April that the supply chain crisis that hits the auto industry in general, will continue to impede its production operations until the end of the year. However, it delivered a record number of cars in the first quarter of 2022.

But in the second quarter, the company suffered a setback with the closure of its factory in Shanghai for several weeks due to the strict closure measures in China, due to the high number of Covid infections.

In its Saturday announcement, the company said it produced 258,000 vehicles in the second quarter of the year, “despite continuing ongoing supply chain challenges and plant closures beyond our control.” It also said that June was the highest production in Tesla’s history. On the other hand, General Motors and Toyota announced a decline in sales for the second quarter in the United States by 15 and 23 percent, respectively, compared to the same period in 2021.

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