Tesla reports second quarter revenue slump after a struggle to meet demands
Tesla’s second quarter of 2022 came to a shaky end as the electric carmaker reported a drop in revenue, missing Wall Street estimates after it struggled to meet demand due to a shutdown of its Shanghai factory and production challenges at new plants.
Total revenue fell to $16.93bn in the second quarter, down from $18.76bn a year earlier, ending a streak of record revenue that the company has seen in recent quarters. Analysts were expecting revenue of $17.10bn.
The earnings report comes more than a month after CEO Elon Musk said he had a “super bad feeling” about the economy and that the company needed to lay off about 10% of salaried workers.
The company has not been immune to global supply chain issues and economic woes. Earlier this quarter, Tesla was forced to temporarily shut down its Shanghai Gigafactory to comply with pandemic lockdown restrictions, which led to a rare drop in delivery numbers. The company delivered 254,000 vehicles this quarter, down 18% from the previous quarter. Tesla also declared a hiring freeze and began laying off workers earlier this month, including 229 staffers who worked on Tesla’s driver assist technology, Autopilot.
In its earnings report, Tesla said the company continues to experience manufacturing slowdowns due to supply chain and other issues which limited its ability to consistently run its factories at full capacity. While the Shanghai Gigafactory was fully and then partially shut down for much of the quarter, the company reported a record monthly production level at that location.
Musk also revealed that the company’s newest factories in Berlin and Texas are losing “billions of dollars right now” as supply chain issues stalled production.
“Just trying to keep the factories operating
Read more on theguardian.com
