A password will be e-mailed to you.

Tesla plays ‘whack-a-mole’ with snags as deliveries fall for first time in two years

Model Y cars are pictured during the opening ceremony of the new Tesla Gigafactory for electric cars in Gruenheide, Germany, March 22, 2022.

Source: Reuters

The Electric Vehicle manufacturing company, Tesla is currently dealing with a number of obstacles starting from manufacturing barriers to increasing inflation that may affect the revenue generated. The researchers of Wall Street made this comment on July 6 after Tesla witnessed a downfall in product supplies for the first time in 2 years.

As the company said earlier that the strict shut down in different provinces of China due to Covid-19 and the rising production charges are collectively having an adverse effect on its manufacturing rates, it disclosed on July 2 that it has made supplies of 254,695 electric vehicles in the second quarter of 2022, resulting in fall of around 18% from the first quarter.

To this date in 2022, the shares of Tesla have witnessed a loss of nearly one-third of their value.

An examiner of Susannah Streeter commented that the shine of the electric-car maker has faded once again after this new reduction in vehicle supplies, which has been reported lower than it was speculated. He further added that this report was a disappointment to Elon Musk’s owned Tesla’s vision to remain at the first position in the electric vehicle manufacturing industry.

The analyst said that the EV maker is facing a situation in which repeated efforts to resolve a problem are frustrated by the problem reappearing in a different form. As soon as one obstacle is dealt with another one appears in front of the firm.

The reviewers of J.P Morgan said that the reports of manufacturing and finance might have been impacted by firm-specific administration problems at the new plants of Tesla in Texas and Berlin.

In a recent comment of the chief executive of the EV maker firm, he said that the two newly built plants of Tesla are giant capital forges that are witnessing a loss of billions of dollars because they are facing problems to hike the manufacturing due to the scarcity of batteries and the difficulties in getting supplies from China.

The reviewers of Streeter have warned that the expense crushing across the globe because of the flaming rise might result in a cause and effect on demand in the coming future.

In the meantime, some reviewers believe that Tesla might recover by the end of 2022.

A superior investment examiner at CFRA Research said that the factories of Tesla located in Texas and Berlin, however, would probably remain a burden on the financial and delivery reports till the day they achieve greater implementation ratios. Although there is a hope that the figures would pick up firmly during the second half of 2022, he further added.

Comments

comments

Send this to a friend