A difficult quarter for Tesla

This weekend, the CEO of Tesla Inc. (NASDAQ:TSLA), Elon Muskcommunicated to employees that the company had had a tough quarter and it was time to rally to regain lost ground, Electrek reported on Sunday, citing an internal memo.

What happened

“It was a very difficult quarter, mainly due to supply chain and production challenges in China, so we must mobilize to recover! ” urged

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Musk, blaming supply chain and production issues in China.

However, he added that Shanghai, where Tesla made more than 50% of cars for the global market last year, is recovering after nearly two months of lockdown.

“Shanghai is back at full strength and Austin is preparing. Forward to victory! the billionaire entrepreneur reportedly wrote in an email, also praising the Fremont and Berlin factories for reaching new milestones.

“I would like to congratulate the team in Fremont for achieving another record production day last week, as well as the team in Berlin for producing nearly 1,000 cars last week! That’s great ! “.

Why this matters

The Austin, Texas-based automaker sold 32,165 Chinese-made electric vehicles in May, Reuters reports, citing data from theChina Passenger Car Associationie – 3.8% compared to last year.

Additionally, it only sold 1,152 copies in April, due to the lockdown imposed in the city of Shanghai.

Although Giga Shanghai reopened on April 19, it struggled to return to previous production levels.

In April, Musk told investors that the giant Shanghai factory could have a production surprise in store for the current quarter and would “come back with a vengeance.”

Tesla recently opened Giga Berlinits first plant in Europe, which is expected to reach full manufacturing capacity by the end of the year.

Price movement

On Friday, Tesla stock price fell 3.12% to $696.69, marking a 42% drop year-to-date, according to data from Benzinga Pro.

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