Tesla said that Covid lockdowns in Shanghai caused supply chain slowdowns that reduced second quarter output to 254,695 vehicle deliveries. That is compared to a first quarter deliveries of 310,048.

Analyst expectations for the quarterly production were 295,078 deliveries, according to Refinitiv data, although several analysts had slashed their predictions down to 250,000 due to the prolonged Covid lockdowns in China, as it pursued its “Zero-Covid” policies.

Tesla delivered 238,533 Model 3 compact vehicles, and Model Y Sport Utility vehicles, and 16,162 Model S and Model X vehicles for the quarter.

Tesla’s total production for the quarter dropped 15.3% from the first quarter, to 258,580, however Tesla was quick to point out that June of 2022 was the highest production month in the history of the company.

Due to the supply chain snarls caused by the Covid lockdowns in China, Musk had famously commented on two of his factories, “Both Berlin and Austin factories are gigantic money furnaces right now,” explaining that all production had ceased due to battery and tooling issues, but the plants were still operating and costing money.