Tesla’s sales from April through June fell to their lowest quarterly level since last fall as supply chain issues and pandemic restrictions in China hobbled production of its electric vehicles.
The Elon Musk-controlled company over the weekend disclosed it sold more than 254,000 cars and SUVs from April through June, an 18 per cent drop from the first three months of this year and also well below the pace in last year’s final quarter.
Tesla sold far fewer units amid a factory shutdown in China and other supply chain woes. Credit:AP
The last time Tesla sold fewer vehicles globally was in the third quarter of 2021 when it delivered 241,000.
On Friday, the rest of the industry reported a 21 per cent drop in sales during the second quarter as the average price for vehicles skyrocketed to a record of $US45,844 amid soaring inflation, according to consumer research group JD Power.
Tesla’s sales drop may be a harbinger of weaker second-quarter earnings for the Austin, Texas, company, which is the world’s top-seller of battery-powered vehicles and has posted net profits for nearly three years. Tesla plans to release its full results for the April-June period on July 20.
Like many other stocks, Tesla shares have been hard hit this year. But the 35 per cent decline in Tesla’s stock price hasn’t been entirely tied to the company’s see-sawing fortunes.
Elon Musk has said his deal to buy Twitter can’t continue until he sees proof of the platform’s bot numbers.Credit:AP
Tesla chief executive Elon Musk also has made a $US44 billion bid for Twitter, which he placed on hold after complaining that it has too many spambot users who aren’t humans. Much of the erosion in Tesla’s value has occurred since Musk became Twitter’s largest shareholder and then launched a takeover bid that has raised concerns he has too much on his already crowded plate
Musk has 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 per cent of Tesla’s sales come from China, and that the Shanghai factory produced about 70,000 fewer vehicles due to the shutdowns.
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