Tesla’s operation in China has reported that its revenue dropped 18.36 percent during the second quarter of 2022. The company raked in $3.8 billion in the period in China. This was revealed in Tesla’s Form 10Q filing with the US Securities and Exchange Commission (SEC).
However, the revenue was a 32.45 percent increase over the same period last year, when it pulled in $2.859 billion. Revenue totaled $4.65 billion in Q1 2022, and this quarter is the first time revenue declined between quarters in China since operation started there in 2019.
Globally, Tesla’s revenue in the second quarter was $16.9 billion, with its home market accounting for $9.6 billion or 56.8 percent. Tesla China was responsible for 22.4 percent of the company’s revenue, against 24.8 percent in Q1.
Tesla was forced to close the Shanghai factory due to an upsurge in Covid-19 cases, as the city instituted a strict lockdown. It reopened on April 19th but did not achieve full capacity until early June. This was a big blow to Tesla’s operation in China as sales dropped significantly to only 1,512 in April.
Tesla delivered 89,275 EVs in China in the second quarter of 2022. The head of Tesla China, Tom Zhu, has been appointed to oversee the company’s operation in the Asia Pacific region.