Pending an extended factory shutdown in China due to Covid-19 restrictions and challenges with opening two new factories in Germany and Texas, Tesla Inc. vehicle deliveries fell for the first time in two years.

According to an announcement on Saturday, Tesla delivered 254,695 vehicles to customers in the three months ended in June, down from 310,048 in the previous quarter, and 258,580 vehicles in the second quarter, down from 305,407 in the first quarter.

This contradicts with Elon Musk’s outlook for Tesla Inc., which predicted that the company would produce more than 1.5 million vehicles in 2022, up some 60% over last year.

The decline in deliveries, which include cars that have already been sold or leased out, is expected to affect the company’s second-quarter earnings, which are scheduled for July 20, for the worse. Analysts expect that Tesla will report roughly $2 billion in quarterly profit, down from its $3.3 billion record in the first quarter.

Earnings are also expected to be affected by the recent Bitcoin drop. Tesla had bought $1.5 billion worth of bitcoin in early 2021 when the cryptocurrency was trading above $28,000. The price of bitcoin soon fell below $17,700 in mid-June. 

Tesla shares also lost more than a third of their value in the first six months of 2022. On April 26 alone, the stock dropped more than 12%, its biggest one-day drop in more than a year after Elon Musk announced his $44 billion bid to take over Twitter Inc.

The company has also been increasing its car prices to face increasing supply costs, and customers who ordered the long-range version of Tesla’s Model Y compact sport-utility vehicle in late June could expect to pay roughly $68,000, or around $14,000 more than they would have if they ordered the model a year earlier, according to Bernstein Research.

“Tesla’s supply chain is structurally superior vs. peers in the mission-critical areas of semiconductors, battery cells, and battery raw materials,” analysts wrote last month. “Tesla is likely to keep all competitors at a stable or even growing distance in terms of absolute growth and profitability.”