Tesla halts production in Berlin, Shanghai factories

Yahoo Finance's Pras Subramanian explains why Tesla is slowing production in July.

Video Transcript

BRIAN SOZZI: Now, also important, perhaps, if not the most important, is Tesla. And now they're halting production again, right?

PRAS SUBRAMANIAN: Yeah, Sozz, and over the weekend, they put out their Q2 numbers, which was kind of a downer, about 50,000 vehicles last quarter, kind of in line with lowered estimates. But the big thing here, Sozz, is they had a very strong June. They said their strongest June month ever. But on top of that, they're going to see some shutdowns in Shanghai and in Berlin.

This is the kind of things that are expected for the automaker in the summer. They like to retool, re-optimize for new cars coming out in the fall. But here, it's not necessarily the greatest thing because Shanghai was sort of on its way towards ramping up. And now they have to shut down Model 3 and Model Y production in July to get things optimized.

Also, Giga Berlin, this is a place that has had numerous issues getting up to speed. They were reportedly only making 1,000 vehicles a week at the highest. They want to make 500,000 vehicles a year there, so they have a long way to go with that. So maybe the shutting down of production at Berlin for two weeks will help them do that. We're going to see later in July or August. We had Tesla's Q2 full results. So we'll see what's going on with the financials as well.

BRAD SMITH: Yeah, that production capacity at each of those--