Why Tesla's Model Y Lead Times In Germany Have Spiked By Over 50%

Tesla, Inc. TSLA has been facing production disruption since the start of the year amid the Ukraine-Russia war and China's COVID-19 lockdowns.

What Happened: Tuesday, Piper Sandler analyst Alexander Potter noted that German Model Y buyers now have to wait for 23.5 weeks, or about 5.5 months, to take delivery of their vehicles. This is markedly higher than the 15.5-week lead time that prevailed a few days ago.

 Source: Piper Sandler

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What's Driving The Wait Time? Potter said he sees three possible reasons for the development.

The Giga Berlin factory that came online earlier this year may be taking longer than expected to ramp, he said. Alternatively, it could mean that Model Y orders in Europe have seen a sudden spurt, leading to a bigger backlog.

Potter also brought up a third possibility of exported vehicles from China taking longer than expected to reach Europe.

Tesla investor and Future Fund co-founder Gary Black sees the development as due to low quantities of Model Y being shipped from China in the second quarter due to the China lockdowns in April.

Price Action: Tesla stock was seen retreating 4.81% to $737.75, according to Benzinga Pro data.