Tesla Inc. has observed lower-than-anticipated deliveries of electric vehicles (EVs) in the third quarter, citing logistical issues.
Analysts stated that Tesla is not impervious to the weakening economy. Dan Ives, an analyst at Wedbush Securities, told Reuters:
The local economy continues to have negative effects on Tesla, primarily logistical. However, I believe there are a few demand issues sprinkled in there. An ominous cloud looms over the auto industry and Tesla is not an exception.
The company itself stated regarding the development that “it is becoming increasingly difficult to secure vehicle transportation capacity at a reasonable cost.”
Ford Motor stated last month that its third-quarter inflation-related expenses would be $1 billion higher than anticipated. It also added that parts shortages have caused delivery delays.
Bloomberg reported last month, citing sources privy to the matter, that Apple Inc. is abandoning plans to increase production of its new iPhones this year due to a lack of anticipated demand growth.
Ed Moya, a senior market analyst at OANDA, stated,
I believe that EVs are in for a bit of a rough patch, as consumers will likely be a bit more hesitant and less eager to purchase something new.
A Widespread Crisis
Toyota Motor Corp. reduced its October production target by 6.3% to approximately 750,000 vehicles yet again. This revelation has heightened concerns pertaining to the chip shortage crisis and its impact on production.
Toyota’s global vehicle production increased by 44.3% year-over-year in August as the sector recovered from the COVID-19 pandemic. According to Reuters, however, the outlook remains uncertain due to the global chip shortage and ongoing COVID-19 pandemic.
Likewise, Honda and several other major automakers have cut production due to supply chain challenges. These developments show that the Pakistani car industry is not alone in this global economic turmoil.