Tesla's Q2 Sales Drop 18% Due To Supply Chain Woes, COVID Lockdowns

Tesla's quarterly sales plummeted to their lowest level since last fall as supply chain troubles and regulatory restrictions in China slowed manufacturing of its electric vehicles, Tom Krisher and Michael Liedtke reported for Associated Press (AP).

Photo Insert: Tesla last sold fewer vehicles globally in the third quarter of 2021, when it delivered 241,000 vehicles.

The company announced on Saturday that it sold over 254,000 vehicles and SUVs from April to June, a reduction of 18 percent from the first three months of this year and significantly below the pace in last year's final quarter.

Tesla last sold fewer vehicles globally in the third quarter of 2021, when it delivered 241,000 vehicles.

According to J.D. Power, the remainder of the sector recorded a 21% reduction in sales during the second quarter, as the average price for vehicles climbed to a record of $45,844 amid skyrocketing inflation.

Tesla's sales decline could foreshadow lower second-quarter profitability for the Austin, Texas-based business, which is the world's top seller of battery-powered vehicles and has posted net profits for over three years. Tesla intends to announce its full April-June earnings on July 20.

Tesla shares, like many other equities, have taken a beating this year. However, the 35% drop in Tesla's stock price isn't completely due to the company's ups and downs.

Elon Musk, the CEO of Tesla, has also made a $44 billion bid for Twitter, which he has put on hold after saying that it has too many spam bot users who aren't human. Much of Tesla's value has declined since Musk became Twitter's largest shareholder and subsequently launched a takeover bid, raising concerns that he already has too much on his plate.

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