Tesla faces difficulties delivering cars

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Electric car manufacturer Tesla has announced that 6% of vehicles produced in the third quarter of 2022 are yet to be distributed, blaming difficulties in securing vehicle transportation capacity at a reasonable cost during what is usually peak season for logistics.

While production significantly spiked from the second quarter, with over 100,000 more cars being produced, deliveries have struggled to keep up.

The difference between cars produced and delivered was less than 5,000 in both of the first two quarters of the year – in the third quarter, over 22,000 fewer cars were delivered than produced.

During the third quarter of 2022, Tesla began transitioning to a more even regional mix of vehicle builds each week, which resulted in a higher number of cars in transit as the quarter drew to a close.

Co-Founder and Chief Executive of Tesla Elon Musk addressed concerns about failing to meet delivery expectations this past quarter on Twitter, writing, “Smoothing out crazy end of quarter delivery wave to reduce expedite costs & relieve stress on Tesla team. Aiming for steadier deliveries intra-quarter.”

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