Tesla Inc.  (NASDAQ: TSLA) will end its almost two-year run o record deliveries each quarter with the prolonged pandemic-related shutdown in Shanghai affecting the supply chain and its production as it gradually ramps production in new factories. 

Tesla expected to see a drop in QoQ production. 

Elon Musk, the CEO of Tesla, has been seeking the takeover of Twitter Inc (NYSE: TWTR), a social networking site, even as his prized possession, Tesla, has struggled with production issues in China and sluggish production expansion at its new factories in Berlin and Texas.

As per Refinitiv data, analysts anticipate Tesla will disclose 295,078 car deliveries for the q2 as soon as Friday. Because of China’s protracted shutdown, several researchers have further reduced their forecasts to around 250,000. This will be Tesla’s first quarter-over-quarter fall in deliveries since Q1 2020, which would drop from its record car deliveries of 310,048 the previous quarter.

The most valued car manufacturer in the world has had fewer supply-chain interruptions and weathered the pandemic better than many automakers, posting record shipments each quarter since Q3 2020.

Protracted zero-COVID lockout in China caused severe production delays. 

However, the protracted zero-COVID lockout in China—which Wedbush analyst Dan Ives referred to as Tesla’s “albatross” in Q2—caused more severe production delays than Musk had anticipated. Ives calculated that the shutdown eliminated nearly 70,000 vehicles in the quarter, 50 percent of the total cars shipped last year, which were made in Tesla’s low-cost, profitable Shanghai factory.

In April, Musk predicted that due to a resurgence in China, Tesla’s total vehicle output in the q2 would be “about on par” with Q1. However, he recently claimed that Tesla had a “very rough quarter,” citing issues with manufacturing and the supply chain disruption in China.

Tesla’s new plants in Texas and Berlin, according to Musk, are “gigantic money furnaces” that are losing billions while trying to boost production swiftly. He claimed that the automaker’s supply-chain issues are still ongoing and that maintaining the operations of the facilities is a concern.