Tesla reports weaker than expected deliveries in the second quarter
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Jul 2, 2021
- Tesla felt the pain from the chip shortage and supply chain constraints.
- The electric car manufacturer started deliveries of its Model S Plaid sedan.
- Shares of the U.S. company were almost flat in premarket trading on Friday.
Tesla Inc (NASDAQ: TSLA) said on Friday its vehicle deliveries in the second quarter came in weaker than expected. FactSet consensus for Q2 deliveries stood at 207,000, but the U.S. electric car manufacturer delivered 201,250 vehicles instead. Shares of the company were almost flat on Friday morning.
In total, Tesla produced 206,421 vehicles in the second quarter, including 2,340 Model S and X vehicles and 204,081 Model 3 and Y. In comparison, the Elon Musk company had produced 180,338 vehicles in the prior quarter (Q1) and delivered 184,800 vehicles.
Tesla felt the pain from the chip shortage and supply chain constraints
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Tesla does not disclose deliveries by model or region. Its Shanghai plant is now producing its affordable mid-range cars, Model 3 and Y, but it doesn’t break out production by region either (China vs the U.S.).
The chip shortage and supply chain constraints weighed on the global auto industry in the second quarter. Consequently, Tesla felt the pain as well. Late last month, CEO Elon Musk’s tweet highlighted that the increase in Tesla vehicle prices reflected “major supply chain price pressure industry-wide. Raw materials especially”. As per the chief executive, the company also made some design decisions that were likely to address increasing costs.
Tesla started deliveries of its Model S Plaid sedan
Tesla also started delivering its Model S Plaid sedan dubbed ‘the fastest production car ever made’ in the second quarter. Weekly production for this higher-end Model S vehicle will keep restricted at several hundred in Q3. In the next quarter, however, the car company is confident it will produce thousands of Model S Plaid sedans every week.
In the recently concluded quarter, several executives announced their departure from the company. This included vice president of legal, Al Prescott, president of automotive and heavy trucking, Jerome Guillen, and deputy general counsel, Lynn Miller.
The news comes a week after Tesla opened a fully-featured charging station in China as part of its plan to develop an energy business in the world’s largest automobile market.