Tesla’s record of quarterly deliveries ends thanks to China’s COVID closures

Tesla announced that they had delivered 254,695 vehicles during the second quarter of 2022, a decrease of approximately 18 percent from the previous quarter. The report, published on Tesla’s website, signals the end of a nearly two-year series of record quarterly deliveries for Elon Musk’s companies, mostly attributable to long-term COVID-related closures of the Shanghai plant.

Tesla said that the Model 3 and Model Y vehicles accounted for 238,533 of these deliveries, while 16,162 were for the Model S and Model X vehicles. On the production side, Tesla said they managed to build a total of 258,580 vehicles.

China has been instrumental in the company̵[ads1]7;s rise to its status as one of the most valuable automakers in the world. But Tesla’s Shanghai Gigafactory has been caught in a seemingly endless loop of openings and closures in recent months, as the nation’s strict COVID lockdown policy has taken its toll.

In March, Tesla closed its Shanghai plant for two days due to an increase in COVID-19 cases, and closed the plant again in April as Shanghai continues to struggle with an urban blockade. The factory in Shanghai is the company’s largest, producing both Model 3s and Model Ys.

Tesla recently opened its first European plant in Berlin, Germany, and held a “cyber rodeo” to celebrate the grand opening of its Austin, Texas Gigafactory – both of which could help offset production problems caused by COVID – related shutdowns in Shanghai. Musk recently described both factories as “giant furnaces” that “lose billions of dollars” as supply chain restrictions continue to limit the company’s plans.

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