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Tesla Sees Sales Decline as Supply Chain Problems Persist

» Posted July 29, 2022Resources | Share This Post

Tesla, still facing a major federal safety probe, has more bad news on its hands.

The company sold about 254,000 vehicles in the second quarter of 2022, down roughly 18% from the same time a year earlier, according to a report from the Detroit News. Supply chain issues and China pandemic restrictions are to blame, according to the news outlet.

“Supply chain breakdowns since the onset of COVID-19 two years ago have been especially debilitating for automakers, who get parts from all corners of the globe,” Tom Krisher writes for the Detroit News. “A lack of computer chips needed to run cars’ computers compounded automakers’ problems and sent prices for used and new cars skyrocketing.”

The world’s auto manufacturers saw sales decline 21% over the quarter industrywide. Meanwhile, car prices continued to soar as the average price tag on a new vehicle topped $45,800.

Slowdowns in China, where the company reportedly makes as much as 40% of its sales, were particularly crippling for Tesla. It temporarily closed its Shanghai plant, which produced about 70,000 fewer cars than expected over the quarter.

Tesla Safety Issues

As Tesla’s sales take a dip, a federal probe into accidents tied to the company’s Autopilot driver assist system continues to grow.

The National Highway Traffic Safety Administration’s investigation now encompasses 830,000 Tesla vehicles equipped with Autopilot. Federal investigators are reviewing crashes involving Teslas and stopped emergency vehicles.

That is not the only safety issue for Tesla drivers.

The company announced in May that it was recalling nearly 54,000 vehicles equipped with “full self-driving” software. Tesla said it needed to pull the plug on a “rolling stop” feature that may not allow cars to come to a full stop at intersections.

Tesla Owners’ California Lemon Law Rights

Tesla owners in California do not have to wait for a federal probe or a recall to get malfunctioning vehicles fixed. The state’s lemon law offers some important rights and protections.

The law, known as the Song Beverly Consumer Warranty Act, generally requires carmakers to perform a variety of repairs on vehicles while they are under warranty. It also forces auto manufacturers to buy back (or replace, in some circumstances) vehicles that they cannot or simply refuse to fix. That includes compensating the owner for the car’s purchase price, as well as financing fees, rental car expenses and other costs.

The lemon law also permits car manufacturers to instead offer to replace a malfunctioning vehicle. It is up to the owner to decide whether to accept or reject this alternative arrangement, however. A California lemon law attorney can help you weigh your rights and options. 

Speak with a California Lemon Law Attorney

If you have been stuck with a defective or malfunctioning vehicle, a California lemon law attorney at Bickel Sannipoli APC can help you fight back.  

Call us at (888) 800-1983 or contact us online to speak with a California lemon law attorney.

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Posted By: Rob Sanders