• Elon Musk said a shortage of carriers, trains, and boats affected Tesla’s ability to deliver vehicles.
  • Musk made the comments during an investor’s results call on Wednesday.
  • The Tesla CEO added that the company was working to “smooth out its deliveries.”

Elon Musk said that a shortage of carriers, trains, and boats has affected Tesla’s ability to deliver its vehicles to customers during the third quarter of 2022.

In the three months to September, Tesla produced 365,923 vehicles. During the same period, it delivered 343,830 to customers.

That’s a new company record but fell below analysts’ expectations and the 22,000 deficit was a bigger gap than usual.

“There weren’t enough boats, there weren’t enough trains there weren’t enough car carriers,” Musk told investors in results call on Wednesday.

Musk has previously said that Tesla would produce more than 1.5 million vehicles this year. The latest results show it’s made 929,910 so far, meaning it would have to make roughly 570,000 units by year’s end to meet that goal.

Zachary Kirkhorn, Tesla's CFO, said the issue was particularly present for ships from Shanghai to Europe as well as "local trucking within certain parts of the US and Europe."

Musk said that Tesla is working to "smooth out its deliveries" to avoid having a "crazy delivery wave" at the end of each quarter.

Representatives for Tesla did not immediately respond to Insider's request for further comment made outside of normal working hours.

Automakers globally have been battling supply chain shortages, backlogs, and rising raw materials costs, especially for the precious metals crucial for making batteries.

Tesla has cited global factors for hindering the company's production and delivery in the last two quarters, including an enforced shutdown of its Shanghai factory and supply chain issues that have been exacerbated by Russia's invasion of Ukraine.

Despite a larger deliveries deficit than usual, Tesla enjoyed a bumper quarter.

The company made a net income of nearly $3.3 billion, on revenues of $21.45 billion during the quarter. Nearly double its net income of $1.6 billion during the same period last year.

Musk told investors the company had "excellent demand for Q4" and expected to sell every car they made.

Read the original article on Business Insider