Tesla plays whack-a-mole as deliveries drop for first time in two years


 July 5 (Reuters) - Tesla Inc (TSLA.O) faces a slew of hurdles from production shortages to rising inflation that could hurt profits, Wall Street analysts said on Tuesday, as the electric car maker reported a drop in deliveries for the first time. Reported for 2 years..


Affected by China's COVID-19 lockdown and rising costs, Tesla said Saturday it delivered 254,695 vehicles in the second quarter, down about 18% from the first quarter.


Supply chain disruptions at the company's new factories in Texas and Germany have also hit production, with analysts warning that the problems could eat into Tesla's profits.


Shares in the world's largest electric car maker fell more than 3% but reversed course to close at 2.6% as growth stocks rallied.


The stock has lost about a third of its value so far this year.


\"Tesla's shine has faded again as the recent drop in deliveries fell short of expectations,\" said Hargreaves Lansdown analyst Susannah Streeter, adding that it was a setback to the automaker's ambitions to stay at the forefront of electric vehicle packaging .


The Model Y is pictured during the opening of Tesla's new electric car factory in Grunheide, Germany, on March 22, 2022. Patrick Puller/Pool via Reuters.


\"Tesla faces a whack-a-mole scenario where the faster one problem is solved, the more the other.\"


Analyst J.P. Morgan, which cut its shares by $10 to $385, said Tesla's manufacturing and financial results could be hurt by company-specific execution issues at the automaker's new plants in Texas and Berlin. influences.


Tesla CEO Elon Musk recently described the two factories as \"giant money melting pots\" that are losing billions of dollars.


Street warns that a global drop in the cost of living could have a knock-on effect on overall demand as inflation rises sharply.


However, some analysts expect a recovery by the end of the year.


Garrett Nelson, senior equity analyst at CFRA Research, said the Austin and Berlin plants could affect results until they reach higher utilization rates, but a strong recovery in production is expected in the second half.


💌 Resources and references: reuters.com


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