Tesla hit record high deliveries in the third quarter—but the EV maker continues to face logistical challenges.
Key Details
- Tesla announced its third-quarter delivery and production numbers on Sunday, reporting 343,000 total deliveries and 365,000 vehicles built.
- The numbers fell below analysts’ forecasts, but still hit a record for the company as the report shows an increase in production from the same time last year when Tesla made 237,823 cars and an improvement from the previous quarter when the electric vehicle (EV) maker built 258,580 cars.
- Although the company hit record numbers, it still faced heavy logistical challenges. “It is becoming increasingly challenging to secure vehicle transportation capacity and at a reasonable cost,” Tesla says.
Why it’s news
Tesla hit record deliveries after facing major supply-chain issues earlier in the year.
In July, sales of Teslas built in China plummeted 64% from the month prior due to an ambitious upgrade of the company’s Shanghai factory. The shutdown in production came as the company began recovering from a months-long Covid lockdown in the city that had disrupted production and supplies, according to CNN Business writer Ramishah Maruf.
Analysts expected Tesla’s third-quarter deliveries to reach nearly 358,000 vehicle deliveries, but the company fell a little short of that number reaching only 343,000 deliveries.
Although Tesla didn’t meet the expected number of deliveries the company still hit a record considering its previous delivery high was just over 310,000 at the beginning of the year.
Others facing issues
Tesla isn’t the only company facing delivery issues.
Ford said last month inflation-related costs would be $1 billion more than expected in the third quarter and that parts shortages had delayed deliveries, according to writers for Reuters.
Apple is another company that has faced issues. The company debuted its newest version of the iPhone, but the demand was lower than expected.
Analysts think the reasoning is due to the continued inflation and people trying to cut back on spending.
