It seems that Tesla's 2-year record of making big quarterly deliveries of cars is about to end. The reason for this drop in demand can be attributed to the supply chain and production problems in Shanghai, China. Considering how most of the cars and the spare parts are produced in China, COVID-19 shutdowns have affected the company badly.
While Elon Musk was busy planning to buy the Twitter platform, his star company ran into production problems in China. In fact, the factories in Berlin and Texas are also experiencing slow output growth, which is worrying for the company.
For the 2nd quarter, analysts expected the carmaker to deliver around 295,078 cars. But there are also many experts who believe that the number will be somewhere around 250,000 due to the prolonged lockdown in China.
In the last quarter, Tesla made a record number of deliveries by touching the number of 310,048 cars.
In fact, the electric car maker has been delivering a record number of cars every single month since 2020. These numbers were posted despite the supply chain problems and the height of the pandemic.
For Tesla, one of the instrumental pieces in its record vehicle production was China. And considering the current situation of lockdowns in China, it was expected that the output would be affected.
It seems that the lockdown in China may continue for some time, and as a result, disruption in the output is also expected. Almost 50% of the cars produced by Tesla last year were made in Shanghai mega factory.
But after the shutdown, we may see a reduction of almost 70,000 car deliveries in the current quarter.
In April, Elon Musk forecasted that the 2nd quarter car deliveries would be almost equal to that of the 1st quarter. For this forecast, Musk was hoping for a rebound in China.