Tesla posts second-quarter sales drop amid supply chain, pandemic problems

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Tesla posts second-quarter sales drop amid supply chain, pandemic problems
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Tesla signaled things are getting better Saturday, saying it produced more vehicles during June than in any other month in its history.

As of early Saturday afternoon, Musk hadn't tweeted about Tesla's second-quarter sales. But he created a bit of a stir late Friday with ending an uncharacteristically long nine-day silence on Twitter.

In a May 30 interview with a Tesla owners' club that was just released last week, Musk said that getting the Berlin and Austin plants functional “are overwhelmingly our concerns. Everything else is a very small thing,” Musk said, but added that “it’s all gonna get fixed real fast.” Musk also has discussed making salaried workers return to offices and a possible 10% cut in Tesla's work force due to a possible recession.

Supply chain breakdowns since the onset of COVID-19 two years ago have been especially debilitating for automakers, who get parts from all corners of the globe. A lack of computer chips needed to run cars’ computers compounded automakers’ problems and sent prices for used andAs the pandemic erupted in the U.S. in 2020, automakers had to shut factories for eight weeks to help stop the virus from spreading. Some parts companies canceled orders for semiconductors.

By the time auto production resumed, chip makers had shifted production to consumer goods, creating a shortage of weather-resistant automotive-grade chips. Although Tesla has fared better than other automakers, the industry still can't get enough chips.

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