Tesla plays 'whack-a-mole' with snags as deliveries fall for first time in two years

Supply chain snarls at the company's newer facilities in Texas and Germany also hurt production, with analysts warning that these issues may crimp Tesla's profits.

Tesla Inc TSLA.O faces a series of hurdles ranging from production snags to rising inflation that may hit profits, Wall Street analysts said on Tuesday, as the electric-car maker reported a fall in deliveries for the first time in two years.

Stung by China's COVID-19 lockdowns and soaring costs, Tesla said on Saturday it delivered 254,695 vehicles in the second quarter, down about 18% from the first quarter.