Tesla sells more electric cars than any other company and, until recently, was expanding rapidly in China, Europe and the United States as rising gasoline prices boosted the battery’s appeal. Other automakers envied Tesla’s growth rate. Tesla delivered more than 254,000 vehicles in the quarter compared with 310,000 in the first quarter. It was the first quarterly drop in deliveries since the start of 2020, when the onset of the pandemic dented global car sales. Tesla’s sales would likely have been even higher had it not been for the pandemic-related outages and supply chain problems that have disrupted operations at the company’s Shanghai factory. China has the world’s largest car market and accounts for about 40 percent of Tesla’s sales. Manufacturing in China was “an absolute disaster in April and May,” Wedbush Securities analysts Daniel Ives and John Katsingris said in a note to investors last week. Tesla suggested it had overcome production problems, saying it built more cars in June than ever in its history. Tesla has more orders than it can fill, but demand could slow if the global economy takes a hit. Elon Musk, Tesla’s chief executive, warned in an interview with Bloomberg News in June that a recession was “inevitable at some point” and that “most likely it will come soon.” He told staff the company would cut 10 percent of its salaried workforce. Tesla looks unlikely to match its growth from last year, when deliveries rose 90% to 940,000 cars. A 50 percent increase for 2022 is more realistic, Wedbush analysts said. That, they said in a note on Saturday, is still an “impressive feat” given that China was “effectively shut down for two months.” The slower growth rate is one factor that has forced investors to reassess Tesla’s chances of dominating the auto industry. Tesla shares have fallen more than 40 percent since their peak in November, even as more buyers are choosing electric cars because of their superior energy efficiency. Depending on local utility rates, an electric car costs significantly less than a fossil fuel vehicle. A typical Tesla Model 3 gets 142 miles to the gallon and costs $450 a year to fuel, according to the Environmental Protection Agency. By comparison, a gasoline-powered Honda Accord gets 33 miles to the gallon and costs $2,200 a year to fuel.
title: “Tesla Sales Slow As Pandemic Production Hobbles " ShowToc: true date: “2022-11-07” author: “Muriel Rodriguez”
Tesla sells more electric cars than any other company and, until recently, was expanding rapidly in China, Europe and the United States as rising gasoline prices boosted the battery’s appeal. The company continues to weather the supply chain turmoil better than rivals such as General Motors and Toyota, which reported sharp sales declines on Friday. There is strong demand for cars, especially electric cars, but shortages of semiconductors and other key components are forcing buyers to wait months for deliveries. Tesla delivered more than 254,000 vehicles in the quarter compared with 310,000 in the first quarter. It was the first quarterly drop in deliveries since the start of 2020, when the onset of the pandemic dented global car sales. Tesla suggested on Saturday that deliveries could pick up in coming months as it overcomes supply chain problems, saying it built more cars in June than ever in its history. Outages and parts shortages related to the pandemic, work at the company’s Shanghai factory. China has the world’s largest car market and accounts for about 40 percent of Tesla’s sales. Manufacturing in China was “an absolute disaster in April and May,” Wedbush Securities analysts Daniel Ives and John Katsingris said in a note to investors last week. Despite the slowdown in deliveries, Tesla is still doing better than other automakers. Compared to the first quarter of 2021, Tesla deliveries increased by 26%. That’s far better than General Motors, which said Friday that its second-quarter U.S. new vehicle deliveries fell 15 percent from a year earlier. Similarly, Toyota Motor reported a 23 percent drop in U.S. sales. Tesla has more orders than it can fill, but demand could slow if the global economy takes a hit. Elon Musk, Tesla’s chief executive, warned in an interview with Bloomberg News in June that a recession was “inevitable at some point” and that “most likely it will come soon.” He told staff the company would cut 10 percent of its salaried workforce. Tesla looks unlikely to match its growth from last year, when deliveries rose 90% to 940,000 cars. A 50 percent increase for 2022 is more realistic, Wedbush analysts said. That, they said in a note on Saturday, is still an “impressive feat” given that China was “effectively shut down for two months.” The slower growth rate is one factor that has forced investors to reassess Tesla’s chances of dominating the auto industry. Tesla shares have fallen more than 40 percent since their peak in November, even as more buyers are choosing electric cars because of their superior energy efficiency. Depending on local utility rates, an electric car costs significantly less than a fossil fuel vehicle. A typical Tesla Model 3 gets 142 miles to the gallon and costs $450 a year to fuel, according to the Environmental Protection Agency. By comparison, a gasoline-powered Honda Accord gets 33 miles to the gallon and costs $2,200 a year to fuel.
