Tesla delivered 90,650 cars to customers during the quarter amid the coronavirus pandemic. This marks a 5% decline from a year ago.
The Covid-19 pandemic has hit the sales and production of Tesla, but it was not as badly hit as other automakers.
Tesla’s second-quarter sales increased a little from the 88,400 cars it produced in the first quarter.
However, production remained low, falling 20% from the first quarter, as Tesla’s factory in Fremont, California, was shut for a couple of months.
CEO Elon Musk did not agree to closing businesses during the pandemic. He described stay-at-home orders “fascist” in a call with investors in late April. Tesla also filed a lawsuit to have its factory operate again in mid-May.
Tesla’s stock remained up 6% in premarket trading before the sales and production release. Tesla is considered the most valuable automaker in the world even possessing only a fraction of the sales of the other automakers. Shares increased by 168% this year, through Wednesday’s close.
Unlike Tesla, other car companies are not faring well due to the effects of coronavirus lockdowns and low demand for travel.
US car sales fell by more than 30% in the second quarter. This is deemed the worst decline in sales since the Great Recession and auto bankruptcies in 2009.
Major automakers announced over 30% decline in US sales in the second quarter, the biggest plunge in sales since the Great Recession and the auto bankruptcies of 2009.
The quarterly sales of several of the top automakers were released Wednesday. The weeks of pandemic-forced dealership closures made a negative impact.
Job losses also affected sales, with limiting spending money and mass work-from-home measures that halted commutes for a long time. Moreover, the closure of auto plants for much of the quarter narrowed the supply of new vehicles at the operating dealerships.
General Motors, the biggest US automaker, recorded a 34% sales decline. Last week, GM said it will slash 700 jobs at a Tennessee plant later this summer due to the drop in demand for the SUVs constructed there. Still, GM reported the decline of sales in April and manifested signs of recovery in May and June.
“GM entered the quarter with very lean inventories and our dealers did a great job meeting customer demand, especially for pickups,” said Kurt McNeil, GM’s vice president of sales.
“Now, we are refilling the pipeline by quickly and safely returning production to pre-pandemic levels,” he said.
Fiat Chrysler (FCAU) announced a 39% drop in revenue, leading to the drop in rental fleet sales. Rental car companies usually purchase about 10% or more of US car sales in the course of a normal year.
With the slow demand for travel, car rental companies have virtually temporarily stopped their purchases.
Hertz applied for bankruptcy. Meanwhile, all the car rental firms are selling cars from their own fleets.
Toyota had a 35% drop in second quarter US sales, although it recorded an improvement as the quarter went on. June sales were off 22%, according to the company.
Jonathan Smoke, chief economist for Cox Automotive, said that despite the signs of progress later in the quarter, a swift increase in sales throughout the summer is not certain.
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