The Starbase facility is located near Boca Chica Village in South Texas. At the beginning of the second quarter, the billionaire CEO expected more robust deliveries.
AFP via Getty ImagesIn the second quarter of the year, deliveries of new battery-powered cars and SUVs were down from the first three months of the year due to a lengthy slowdown of production in China due to strict Covid-related protocols.
The company said it delivered more vehicles to customers in the second quarter than it did in the first, but it was down from a record in the first. The average of analysts' estimates was 258,000 deliveries.
There are ongoing supply chain challenges and factory shutdowns beyond the control of the company.
The company is called tesla inc.
After a period of relative stability in terms of profit and production growth, the Chinese market has begun to slow. In addition to a slower pace of deliveries, the quarter also brought the first large-scale job cuts that Musk, who expects the U.S. economy to fall into recession, said will affect about 4% of employees worldwide. The elimination of about 200 jobs for people working with the autopilot team was one of the firings this week. Tough startup conditions at the new Berlin and Austin Gigafactories are costing the company Billions.
Musk said in a May 31 interview that the Berlin and Austin factories are huge money makers. Berlin and Austin are losing billions of dollars because of a lot of expenses.
The cars are waiting to be loaded at a port in China.
VCG via Getty ImagesIn the company's first-quarter results call on April 20, Musk predicted that the current three-month period would be similarly robust.
Despite new issues that arise, I think we will see a record output per week from GigaShanghai this quarter, even though we are missing a couple of weeks. Vehicle production will probably be the same in Q2 as it was in Q1. It is1-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-6556
The production for the just-concluded quarter was up from a year ago but down from the previous quarter record.
Unlike other automakers, which book vehicle sales as soon as they are shipped from factories to dealers, the company doesn't record its models as sold until they are delivered to customers. The Model 3 and Model Y made up the lion's share of the deliveries. The Model S sedan and Model X SUV, which cost more than $100,000 each, were the top sellers.
The results will be reported later this month.
The company's shares rose 1.2% to close at $681.79.
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