A record-setting quarter for was the third quarter. Tesla stock (NASDAQ:TSLA), the market leader in electric vehicles.
In the third quarter, Elon Musk’s company delivered fewer cars to consumers than projected and suffered unforeseen charges.
The corporation, whose operations are widely monitored since they are a key indicator of the auto industry’s health, reported stronger new vehicle delivery and production results on October 2 than the previous quarter.
According to a press statement, Tesla delivered 343,830 automobiles throughout this time, which concluded on September 30. This was a 42.5% increase over the third quarter of 2021 when Tesla shipped 241,300 vehicles.
Tesla Stock: ‘Reduce Expedite Costs’
With eyes on Tesla stock (NASDAQ:TSLA), many observers anticipated the manufacturer to increase new vehicle deliveries after the quarter after being slowed by different occurrences at several of its four facilities throughout the quarter.
Tesla (TSLA), for example, momentarily halted production at its Shanghai facility in July to make modifications in order to enhance manufacturing capacity. The business encountered significant challenges in Germany after opening its European facility near Berlin last March. The company is expanding in Austin, where its fourth facility has been operational since April 7.
“Smoothing out the wild end-of-quarter delivery wave to decrease costs & lessen stress on Tesla team,” Musk tweeted on October 2, after a Twitter user asked if he could add any clarity to the data.
He claimed that Tesla (TSLA) will now choose a “steadier” quarterly delivery pace. The billionaire went on to say that the end-of-quarter rushes were also hurting customers.
“We’re aiming for more consistent delivery within the quarter,” the CEO continued.
“That makes sense,” the user said. “The end-of-quarter delivery tsunami is awful for the staff, the consumers, and the bottom line. A more consistent delivery mix throughout the quarter would be ideal. I’m sure Berlin and Austin will help with it as they grow.”
Musk went on to say: “When there is a hurry at the end of the quarter, the customer experience suffers.” The prudent course of action is to proceed steadily.”
Challenges
Over three quarters, the business produced about the same number of automobiles as in 2021 — 929,910 units now vs. 930,422 vehicles in 2021. Extrapolating, Tesla should generate more than 1.24 million cars in 2022.
In terms of deliveries, 908,573 automobiles will be delivered in 2022, compared to 936,172 in 2021. In 2022, Tesla is estimated to deliver approximately 1.21 million automobiles.
However, the Austin, Texas-based organization cautioned on October 2 that they had found additional logistical obstacles and had incurred unanticipated expenditures.
“As our manufacturing volumes increase, securing car transportation capacity at a fair cost during these peak logistical weeks becomes more difficult,” Tesla cautioned.
When supply chain interruptions do not totally eliminate, these extra and unexpected expenses decline. China has yet to lift its zero covid-19 policy, which compels suppliers, for example, to stop plants, resulting in a lack of components temporarily.
Featured Image – Unsplash © Milan Csizmadia
Author Okoro Chinedu 
