Tesla Inc. is expected to report its first sequential decline in quarterly profit in more than a year as it recovers from an extended shutdown at its Shanghai assembly plant.

Covid-19-related restrictions in China and ongoing supply-chain disruptions limited the company’s second-quarter production, which tumbled 15% from the first three months of the year.

Tesla, after market close, is expected to report second-quarter sales of around $16.5 billion, analysts estimate. That’s up from roughly $12 billion during the same period last year, though below the company’s $18.8 billion in first-quarter revenue.

The world’s largest car company by value will likely post $1.9 billion in second-quarter profit, according to FactSet, below its record quarterly profit of $3.3 billion in the first three months of the year. It generated $1.1 billion in profit during the year-ago period.

The challenges of recent months have prompted concern among investors about Tesla’s ability to meet its 2022 production goals. Chief Executive Elon Musk struck an optimistic tone in April, saying the company likely would produce more than 1.5 million vehicles this year, up some 60% over last year and ahead of its long-term target of increasing deliveries by an average of 50% annually over the coming years. Wall Street now estimates Tesla could struggle to turn out 1.4 million vehicles.

SHARE YOUR THOUGHTS

What’s your outlook on Tesla? Join the conversation below.

Among the factors likely to weigh on Tesla’s results: a bitcoin-related impairment that could reach around $475 million, Credit Suisse has estimated. Tesla bought $1.5 billion worth of bitcoin in early 2021, when the cryptocurrency was trading above $28,000. Bitcoin fell below $17,700 in mid-June, according to CoinDesk. The company’s disclosed accounting methodology factors in the lowest market price of the cryptocurrency since the asset was acquired.

Tesla has laid off staff in recent weeks, after Mr. Musk told employees in June that the company had “become overstaffed in many areas.” Severance payments tied to the cuts could dent earnings by around $100 million in the second quarter, New Street Research estimated.

Tesla’s stock price has fallen by around a third in 2022 amid a wider drop in equities and certain company-specific headwinds. Tesla has had trouble getting two new factories up to speed, one of them in Germany and the other outside of Austin, Mr. Musk said in late May. At the time, he called the plants “gigantic money furnaces.”

The company has said it delivered around 254,695 vehicles to customers in the three months ended in June, down from 310,048 in the prior quarter. Deliveries were up roughly 27% from last year’s second quarter, helped by the fact that Tesla reached a monthly production record in June, the company has said.

Mr. Musk, who is embroiled in a legal battle over his $44 billion deal to acquire Twitter Inc.,

hasn’t said publicly whether he plans to participate in Wednesday’s analyst briefing. A Delaware judge on Tuesday agreed to Twitter’s request to fast-track a lawsuit seeking to compel Mr. Musk to consummate his purchase of the social-media company.

Tesla, like much of the auto industry, has been hiking prices as suppliers request more for their products. U.S. customers who ordered the long-range version of Tesla’s Model Y compact sport-utility vehicle in late June could expect to pay around $68,000, or some $14,000 more than they would have if they ordered the model a year earlier, according to Bernstein Research.

“If inflation calms down, we can lower prices for cars,” Mr. Musk said last week on Twitter.

Write to Rebecca Elliott at rebecca.elliott@wsj.com