Tesla sales climb but miss expectations due to supply shortage and the rising cost

Rising costs, logistics bottlenecks, and supply shortages are hitting Tesla as it is rapidly ramping up its electric car production.

In financial updates for investors, Tesla said that while the sales problem has been improved in recent months other remains to be their immediate challenges. The three months revenue, which ended in September, was lower than expected as car sales fell short of expectations. But it remained more than 50% higher than the previous year at $21.45bn.

In recent years, Elon Musk’s Tesla has been growing aggressively. It opened new factories in China, Germany, and the US and has been boosting output. Tesla delivered 343,000 cars in the quarter and which was up more than 40% from the same period the previous year.

The cars produced by the firm were more than sold, which rose fear that demand may be slowing, as higher borrowing costs, a major economic slowdown in the Chinese market, and rising costs discouraged buyers.  Many major investors of Tesla are worried that after committing to buy Twitter Elon Musk isn't spending enough time on the company.