Tesla continues to make gloomy headlines. The EV manufacturers has reported production and delivery of more than 2,54,000 units for Q2 2022. While this number is a 26.5% improvement from Q2 2021, the company has seen a quarter-over-quarter production drop of 18% from Q1 2022.
The drop in production and delivery has been attributed to the broader supply chain constraints which have become a bottleneck for multiple industries. In addition, global raw material shortages and the company having to shut down it’s Shanghai manufacturing unit multiple times due to government enforced COVID-19 lockdowns have added to the problem.
Most of the company’s delivered units included Model Ys and Model 3s, with the more expensive Model S and Model X forming a smaller chunk of the pie. This year’s Q2 saw the company’s deliveries to hit the lowest since Q3 2021, when the company delivered over 2,41,000 units. This quarter marks the first instance of QoQ decrease of production in the last 2 years.
These numbers come a week after CEO Elon Musk reffered to the current state of Tesla’s Austin and Berlin manufacturing units as “money furnaces” in a interview. Musk also mentioned getting Austin and Berlin to profitability, and getting the Shanghai unit to function stably are the company’s chief concerns. According to Musk’s leaked emails, Tesla also plans to pause all hiring and cut its salaried workforce by 10%.
The Electric car industry as a whole has seen a marginally greater 21% decrease in production, as the Russia-Ukraine war continues to wreak havoc on the global supply chain. So far this year, Tesla’s stock has seen a 35% decline, which has been due to multiple reasons, including the moves made by Musk in pursuit of his takeover of Twitter.