Tesla Sales Slow as the Pandemic Hobbles Production

The company said Saturday that vehicle deliveries from April to June fell 18 percent due to production problems in China.

Until recently, the rising price of gasoline increased the appeal of battery power in China, Europe and the United States, which led to the rapid expansion ofTesla. The growth rate ofTesla was envied by other car companies.

In the first quarter, 310,000 cars were delivered by the company. The first decline in deliveries since the beginning of 2020 was caused by the Pandemic.

If it weren't for supply chain problems related to the Pandemic,Tesla's sales would have been even higher. 40 percent ofTesla sales are in China, the world's largest car market

In a note to investors this past week, Daniel and John said that China's production in April and May was an absolute disaster.

The company said that it built more cars in June than any other month in its history.

If the global economy gets hit by a speedbump, demand may slow. In an interview with Bloomberg News in June, Musk said that a recession was inevitable and that it was more likely than not. The company will reduce its work force by 10%.

Last year, deliveries increased 90 percent to 940,000 cars. It is more realistic to increase the rate by 50 percent.

Considering that China was shut down for two months, it's still an impressive feat.

The slower growth rate is one factor that has caused investors to rethink their opinion of the company. Even as more and more buyers choose electric cars because of their superior energy efficiency, the shares ofTesla have fallen more than 40% from their peak.

Electric cars are less expensive to operate than fossil-fuel vehicles. The EPA says a standard range of the Model 3 costs $450 a year to fuel. A Honda Accord with a gasoline engine gets 33 miles to the gallon and costs $2,200 annually to fuel.