What just happened? Elon Musk claims that Tesla has now produced more than 3 million vehicles, including one million from the company’s Shanghai factory. The tweet comes just over two months after Tesla recorded its first sequential drop in vehicle deliveries in more than two years due to Covid shutdowns in China.
“Congratulations to Giga Shanghai for building the millionth car! Teslas total is now over 3 million,” Musk tweeted yesterday, alongside a photo of factory workers celebrating the milestone. Just weeks ago, Musk revealed that the Tesla factory in Fremont, California had produced its two millionth vehicle.
Congratulations to Giga Shanghai for building the millionth car! Total Teslas are now over 3M. pic.twitter.com/2Aee6slCuv
— Elon Musk (@elonmusk) August 14, 2022
Tesla released its second quarter results in July. The company delivered 254,695 vehicles in the April-June period. While this represents a 26% increase from the 201,250 vehicles delivered in the second quarter of 2021, the figure for the previous quarter (Q1 2022) was 310,048. Tesla also recorded a net profit of 2.26 billion dollars, down about 31.5% quarter over quarter, and revenue fell from $18.7 billion in the first quarter to $16.9 billion in the second quarter.
The Chinese shutdowns have been blamed on Wall Street for revising Tesla’s expected number of second-quarter deliveries. The Shanghai factory was responsible for around half of the company’s output last year, but a sudden rise in Covid cases combined with China’s zero-tolerance approach to outbreaks has seen production temporarily suspended in the factory and those belonging to its suppliers. Tesla was forced to increase production at the Fremont plant to try to make up the shortfall. Musk added at the time, however, that “we have the potential for a record second half.”
Tesla remains quite far down the list of the world’s biggest automakers, occupying the twentieth position (for 2021) between India’s Tata at 19th and Japan’s Suzuki at 21st. Toyota, the world’s largest automaker, delivered over 10 million vehicles in 2021.
Tesla also has factories in Germany and Austin, which Musk has previously described as “money furnaces”, losing billions of dollars due to expense and poor performance.
Musk revealed last week that he had sold $6.9 billion worth of Tesla stock to help fund his takeover of Twitter if the platform forced him to complete the deal in court. The auto giant also sold 75% of its bitcoin holdings due to concerns “about the company’s overall liquidity given the COVID shutdowns in China.”
Like virtually all companies, Tesla shares have fallen this year, down nearly 25% since January. But the stock price has seen a mild resurgence over the past month as it prepares for a 3-for-1 stock split.