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Tesla produced 258,580 vehicles and delivered 254,695 vehicles in Q2. Deliveries, which the industry looks at closely as a proxy for sales, were expected to be in the 250K range, after estimates had been knocked down by Wall Street analysts over the past few weeks over concerns from COVID shutdowns in China.
Prior to recent estimate cuts, Tesla was expected to deliver around 304K vehicles for the quarter.
Tesla said Q2 production and deliveries came despite “ongoing supply chain challenges and factory shutdowns beyond our control.” In a bit of good news for the street, Tesla also revealed June was the “highest vehicle production month in Tesla’s history,” hinting at a possible strong Q3 to come.
Given the comment regarding June production, it seems Tesla may finally be past issues affecting the Shanghai gigafactory, that was shut down for most of April and has taken some time to ramp up to pre-shut down levels.
Ramp up at the new factories in Austin and Berlin may be improving as well. Last week a Tesla insider claimed the automaker was making 5,000 vehicles a week at Giga Austin, and a week prior it was reported Giga Berlin had its first 1,000 vehicle week.
In a note to clients following release of Q2 production and delivery figures, Wedbush analyst Dan Ives wrote, “the Street is now focused on 2H (likely up 40%-50% from 1H barring no more major China zero Covid issues) deliveries and 2023 numbers as a more normalized environment to gauge the overall health of Tesla's delivery trajectory and top-line/EPS.”
Whether Tesla can hit its 50% CAGR (compound annual growth rate) target for production this year is a story investors will be watching as the second half of 2022 begins. Tesla will report its full Q2 results after the bell on Wednesday, July 20th.