Tesla's second-quarter shipments hit by lockdowns in China, but June production is highest on record: the worst may be behind

Tesla, Inc. TSLA reported second-quarter deliveries that fell sequentially, in line with expectations, as COVID lockdowns in China impacted performance. On a positive note, the company reported an increase in Model S/X deliveries and also disclosed record production for June, signaling that things could move north from this point. What happened: Tesla reported deliveries of 254,695 vehicles in the second quarter, the company said in a statement Saturday. Year over year, second quarter shipments increased. This represents a decrease of approximately 18% compared to the 310,048 vehicles delivered in the first quarter. Tesla's second quarter was marred by supply chain issues and factory shutdowns following the closure of The Giga Shanghai factory for about three weeks in April before starting to gradually ramp up. Ahead of the report, Wedbush analyst Daniel Ives said he expects 70,000 units to be eliminated from the quarter due to shutdowns in China. The analyst modeled shipments of 250,000 units for the quarter and added that anything above 260,000 units will be viewed positively by the street. In terms of models, Tesla delivered 16,162 Model S/X vehicles, up approximately from the March quarter. Meanwhile, model 3/Y deliveries were 238,533 units, up from 295,324 units in the first quarter, but higher than the 199,360 vehicles sold in the year-ago quarter. Related link: Record production in June: Production totaled 258,580 vehicles in the second quarter. This compares to 206,421 units in the prior year and 305,407 units in the previous quarter. The company noted that June was the highest vehicle production month in its history. What's next: With the shipments report now behind, the next big catalyst for Tesla is its first-quarter earnings report which is due on July 20, after the market closes. Analysts, on average, expect the company to report earnings per share of $2 in the second quarter, up from the $ a year ago. Revenue is expected to rise more than 46% to billions of dollars. Ives said the Street will focus on the second half trajectory and the overall demand picture. "We note that even with China essentially closed for 2 months (April, May) from a demand/production perspective, Tesla is still on track to increase shipments by approximately 50% year over year. 'other in 2022,' the analyst said. Tesla closed Friday's session higher at $, according to 2022 Benzinga does not provide investment advice. All rights reserved.