Automotive company Tesla reportedly delivered 343,830 electric vehicles in the third quarter (Q3), a new record for the company this year. However, the company still underperformed as it failed to meet Wallstreet projections.
Following the shutdown of its company in China, due to the country’s extended COVID-19 lockdown and challenges around opening factories, Tesla’s delivery fell to nearly 18% in the Second (Q2) of 2022 which took a toll on the company.
Despite the rebound and record number in Q3, there was also a larger-than-usual gap between production and delivery numbers. The company produced 365,923 vehicles in the third quarter.
The company disclosed that part of why it failed to hit certain delivery figures was due to logistical challenges which overshadowed its record deliveries.
Tesla said “it is becoming increasingly challenging to secure vehicle transportation capacity and at a reasonable cost,” but some analysts were also concerned about demand for high-ticket items due to the weakening global economy.
In other words, the car manufacturing company is going to try and evolve beyond its legendary end-of-the-quarter pushes. CEO Elon Musk tweeted that it is trying for a steadier approach, “Customer experience suffers when there is an end-of-quarter rush. Steady as she goes is the right move,” he tweeted.
According to a statement from the company, it said “As our production volumes continue to grow, it is becoming increasingly challenging to secure vehicle transportation capacity and at a reasonable cost during these peak logistics weeks.
“In Q3, we began transitioning to a more even regional mix of vehicle builds each week, which led to an increase in cars in transit at the end of the quarter. These cars have been ordered and will be delivered to customers upon arrival at their destination.”
The economy around the edges is still having a negative impact on Tesla that’s mostly logistical. It should be recalled that on April 21, 2022, Investors King reported that Tesla realised $18.7 billion in revenue in the first quarter (Q1) of 2022 despite supply disruptions and delays experienced due to Chinese Covid-19 lockdown.
