Tesla from dwindling revenue – By Andrew Tarantola (Engadget) / July 20, 2022
The company is looking at layoffs to counter inflating costs.
The supply chain issues that have wracked the rest of the automotive industry for more than a year appear to have finally caught up with Tesla. The EV automaker announced on Wednesday’s Q2 investors report that its automotive revenue has declined by more than 13 percent following last quarter’s record-breaking mark despite ending the quarter with “the highest vehicle production month” in company history.
Per the company, Tesla produced 258,580 vehicles last quarter and delivered 201,304 of them. During last quarter’s investor call, CEO Elon Musk estimated that the company could increase its annual deliveries by 60 percent in 2022. To date, the company has delivered 564,743 vehicles and would need to sell another 935,257 of them by year’s end to meet that goal.
This could prove challenging given that the company produced nearly 18 percent fewer vehicles this quarter than last (though still up 27 percent year over year). COVID-related lockdowns shuttered the Shanghai Gigafactory for most of Q2, though ramping production at the newer Austin and Berlin-Brandenburg plants have helped offset the closure. Austin has begun producing vehicles with the company’s new 4680 battery cells and the Berlin Gigafactory notched a production rate of more than a thousand vehicles in a single week during the last three months.
