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Tesla has posted its Q2 results for vehicle production and deliveries ahead of its incoming financial report later this month.
Tesla (NASDAQ: TSLA) electric vehicle deliveries saw an 18% decline for the second quarter. The Elon Musk-led company recently posted its Q2 vehicle production and delivery numbers which fell short of analysts’ expectations. For the period ended June 30th, Tesla’s total vehicle production came in at 258,580, with deliveries amounting to 254,695.
Tesla pointed out a few reasons for the reduced delivery numbers, including supply chain constraints. The electric vehicle company also mentioned the extended Covid-19 lockdown in China, which impacted productivity in its Shanghai factory. Tesla was forced to shutter its Shanghai plant on multiple occasions in line with a government-mandated shutdown in China caused by rising Covid cases. Lastly, Tesla also said there were challenges stemming from opening its Berlin and Austin factories. Last week, Musk described these new Tesla factories as “gigantic money furnaces.”
How Q2 2022 Tesla Deliveries Stack Up Against Previous Quarter, Analysts’ Expectations
The current figure represents a quarter-over-quarter fall for the first time in two years. For the period ended March 31st, the EV maker’s vehicle deliveries were 310,048. Although Tesla’s current figure is higher than the 201,250 recorded for the same period last year, analysts had expected 256,520 vehicles for Q2 2022.
The second quarter of 2021 was the first time Tesla delivered more than 200,000 in three months. Compared to the 254,695 EVs for the second quarter of 2022, the company saw a sales growth of 26.5% year-over-year. However, this number is a 17.9% sequential decrease for the electric vehicle manufacturer.
Aside from deliveries, Tesla’s production fell by 15% from the year’s first quarter. An official press release revealed that the EV company produced 305, 407.
Tesla also reported that a significant chunk of manufactured and delivered vehicles were Model 3 and Model Ys. This has been the case for the company across all other quarters over the last two years. Only 16,411 produced vehicles for the latest quarter were the older Model S and Model X vehicles.
Depending on parameters such as manufacturing capacity, Tesla says that it is targeting a 50% average annual growth in the long term. In its Q1 shareholder deck, the EV maker said:
“We plan to grow our manufacturing capacity as quickly as possible. Over a multi-year horizon, we expect to achieve 50% average annual growth in vehicle deliveries.”
Q2 2022 Financial Report
Tesla also announced that it would post its comprehensive financial results for the second quarter of 2022 after its market close on Wednesday, July 20, 2022. Furthermore, the company also forewarned that investors should not take its current vehicle delivery numbers as an indicator of its incoming financial report. According to Tesla:
“Tesla vehicle deliveries represent only one measure of the company’s financial performance and should not be relied on as an indicator of quarterly financial results.”
Other Tesla News
In a May interview, Musk said that producing more Model Y SUVs would be difficult because the company does not have enough 4680 cells batteries. It decided to make some concessions by using the older 2170 cells battery for production in Austin.
Tesla is also reportedly planning to layoff 200 staff from its San Mateo office.