![]() The company also plans to install a third shift. The factor, which currently produces around 1,000 vehicles a week, will be restructured to allow for onsite electric motor manufacturing. Upcoming changesĭelivery woes aside, Tesla also recently announced that it would temporarily shutter production at its Berlin factory. Meanwhile, Russia’s invasion into Ukraine continues to exacerbate all kinds of supply chain issues and raise energy and production costs. And cost-of-living squeezes – which have prompted Tesla to start laying off some 10% of white-collar staff – continue to impact demand, profits and output. The company grappled with other production shortages and inflation pressures in its newer Texas and German factories, too. Limited capacity hampered the automaker’s downstream ecosystems, leading to parts shortages, snarled supply lines and stunted production efforts.īut Shanghai wasn’t the only problem Tesla faced last quarter. ![]() As a result, Tesla’s Shanghai output plunged dramatically. Thanks to spiking Covid-19 infections in China, Shanghai spent much of the quarter in varying states of lockdown. One of Tesla’s primary hurdles for the quarter was its Shanghai factory, which produces the bulk of its electric motors used in its new Berlin factory. And, despite low deliveries, June 2022 still marks Tesla’s highest production month ever. After all, Tesla hasn’t been immune to the damages wrought by inflation, supply chain woes or the factory shutdowns rocking China. While these numbers are indeed disappointing, they’re not entirely shocking.
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