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Tesla’s EV sales hits 3-year low amid Shanghai lockdown

Jun 09, 2022 11:44 am

The Shanghai’s lockdown has brought a downward trend to Tesla Inc.’s share of global electric vehicle sales which fell to the lowest in more than three years.

The Model 3 maker registered 39,650 vehicles in April, down 78% from the month of March, according to a report Dan Levy, Credit Suisse’s US auto analyst, published Wednesday. Tesla’s share of global EV sales dropped to 10% from 27%, Levy wrote, citing data from EV-Volumes, which tracks more than 80 markets.

Tesla is working hard to restore production at its Shanghai factory, which was shut for about three weeks beginning in late March when the city implemented restrictions to contain a Covid-19 outbreak. Thousands of workers have been working 12-hour shifts, six days a week, to bring the facility back up to speed. Many slept on the plant floor as part of a so-called closed-loop system to keep Covid out and cars rolling off production lines.

It’s not unusual for Tesla’s sales to drop substantially from the last month of one quarter to the first month of the next. Chief Executive Officer Elon Musk has said the company concentrates on making cars for export early each quarter, and that the time it takes to transport those vehicles to customers back-ends deliveries every three months.

Musk tweeted in September that Tesla was hoping to reduce this end-of-quarter wave by early this year, and wrote that starting production at a new factory near Berlin would help the company smooth out its deliveries. The Shanghai plant became the carmaker’s primary export hub last year.

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