Tesla's quarterly sales drop amid supply chain, pandemic problems
The impact of the sales decline is expected to play into the company's earnings for the quarter which will be reported on July 20.
Tesla's sales last quarter were impacted by supply chain issues and pandemic restrictions in China.
The electric vehicle maker's April through June sales fell to their lowest quarterly level since last fall.
On Saturday, Tesla revealed it sold more than 254,000 cars and SUVs in the second quarter, an 18% drop from the first three months of this year and also well below the pace of last year's final quarter.
A Tesla vehicle drives past Tesla's primary vehicle factory in Fremont, California. REUTERS/Stephen Lam (REUTERS / Reuters Photos)
Tesla wasn't alone as the rest of the industry reported a 21% drop in sales during a quarter where the average price for vehicles skyrocketed to a record of $45,844 amid soaring inflation, according to J.D. Power.
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The impact of the sales decline is expected to play into the company's earnings for the quarter which will be reported on July 20.
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It was a tumultuous quarter for Tesla, as CEO Elon Musk made a $44 billion bid for Twitter, which he placed on hold after complaining that it has too many spam bot users who aren’t humans.
The billionaire has said he believes at least 20% of Twitter's users could be spam, fake accounts (Getty images | istock)
Tesla shares are off 35% this year.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TSLA | TESLA INC. | 357.09 | +11.93 | +3.46% |
The company did say as a highlight that it produced more vehicles during June than in any other month in its history.
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Musk had been missing from Twitter for nine days until he posted a photo on Friday with him and four of his children meeting with Pope Francis in Italy.
In recent months, Musk discussed topics such as making salaried workers return to offices and a possible 10% cut in Tesla's work force due to a possible recession.
The Associated Press contributed to this report.