Covid lockdowns in China resulted in a rare drop in production and sales for Tesla in the second quarter.
The electric automaker reported that completed sales dropped nearly 18%, to about 255,000 vehicles in the second quarter compared to the first three months of the year. Production fell 15% to 259,000.The company's factory in Shanghai was shut for several weeks in April due to lockdown rules in the city aimed at combating a surge in Covid cases. Problems getting parts from Tesla suppliers also limited Tesla's production even after the plant reopened.
Most of Tesla's non-US sales came from vehicles built in Shanghai. Still, it marked the first time since early 2020 that the company experienced a drop in either sales or production compared to the previous quarter. That sales decline also was due to the lockdowns associated with the early global outbreak of Covid.Such drops have been rare at the fast growing company.
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