Tesla has announced that production would be halted following a rocky quarter and a historic production milestone

Tesla has announced that production would be halted following a rocky quarter and a historic product ...

After the July 4 holiday, Tesla investors have a lot to worry about: a disappointing quarter of deliveries, a record month of production, and now several weeks of shutdown at various sites, according to Bloomberg. The plant will suspend most of its Model Y assembly line in Shanghai for the first two weeks of July, then stop the Model 3 line for a 20-day stretch starting July 18. Upgrade work at the factory is expected to be completed by early August.

TeslaMag announced that the carmakers' factory near Berlin would take a two-week vacation starting July 11. According to an unidentified source, Tesla hopes to roughly double its production rate from August.

Tesla's production and deliveries statement for July 2 did not include any of these plans. The carmaker said in June that it produced more automobiles than any month in its history, while revealing 254,695 deliveries, despite analysts' estimates.

Philippe Houchois, a Jefferies analyst with a buy rating on Tesla stocks, said the relative weakness of the quarter was expected. His remarks referring to the company's new facilities as money furnaces suggest that Teslas free cash flow may have been impacted by substantial working capital constraints.

Tesla shares increased by as much as 0.7 percent following the start of premarket trading Tuesday.

Teslas' worst performance in a quarter came from a weeks-long hiatus in response to a Covid epidemic in Shanghai. The company went to extraordinary lengths to restore its factory there and keep it running, with thousands of employees sleeping on-site to maintain partial production.

Tesla's largest manufacturing facility in Shanghai, its two branches in Germany and Austin, Texas, are just getting started. On March 22, Musk held an opening party at the former and the latter on April 7.

Musk danced in Germany and donned a cowboy hat and shades in Texas, but the CEO sounded considerably less a few weeks later.

Because of a ton of expenditure and little output, Berlin and Austin are losing billions of dollars right now. On May 31, Musk told Silicon Valley's Tesla Owners. The need to get Berlin and Austin back on track is of paramount importance.

Tesla shares fell by 38 percent in the three months ended in June, a new quarterly decline for the S&P 500 index since the first quarter of 2020.

Tesla's quarterly earnings report has been scheduled for the 20th of July.

Bloomberg LP, 2022

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