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Tesla deliveries drop as China factory temporarily shuts down

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2022-07-04 12:58:00

Teslasaid Saturday that deliveries of its electric vehicles fell in the second quarter compared with the previous quarter,largely because its factories in China were closed for several weeks.

Elon Musk's businesses delivered 254,695 vehicles from April to June, it said in a statement.

That's up 27% from the same period a year ago, but down 18% from the January-March 2022 quarter, the first such decline in more than two years.

That's a disappointment for a company that said it was delivering strong growth and touted the opening of two new factories in Germany and Texas this year.

Data from financial data and software firm FactSet showed deliveries fell more sharply than analysts expected, who had expected 264,000 vehicles to be delivered to buyers.

Teslawarned in April that supply chain disruptions across the auto industry would continue to disrupt the company's production until the end of the year.

Still, it delivered a record number of cars in the first quarter of 2022.

But in the second quarter, Tesla had to close its Shanghai factory for several weeks amid a surge in Covid-19 cases and a strict lockdown in China.

In its statement Saturday, the company said it produced 258,000 vehicles in the second quarter "despite ongoing supply chain challenges and plant shutdowns beyond our control."

It also said June was the highest month for car production in Tesla's history.

Elsewhere in the industry, GM and Toyota's second-quarter U.S. sales fell 15% and 23%, respectively, compared with the same period in 2021.

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