Tesla Inc (TSLA.O) reported record electric vehicle deliveries for the first quarter on Saturday, mostly surpassing analysts’ expectations, while production decreased from the previous quarter due to supply chain issues and the suspension of a China facility.
“This was an *exceptionally* difficult quarter due to supply chain interruptions & China zero Covid policy,” Chief Executive Elon Musk tweeted. “Outstanding work by Tesla team & key suppliers saved the day.”
In the third quarter, Tesla delivered 310,048 vehicles, a modest rise over the previous quarter and a 68 per cent gain over a year ago. According to Refinitiv data, Wall Street predicted 308,836 automobiles to be delivered.
From January to March, Tesla produced 305,407 automobiles, down from 305,840 the previous quarter.
Tesla, the world’s most valuable automaker, has fared better than competitors in dealing with the pandemic and supply chain interruptions, and its new Shanghai factory is boosting growth.
However, because of a recent surge in COVID-19 cases in China, Tesla had to temporarily halt production at its Shanghai factory for several days in March and April while the city went into lockdown to test inhabitants for the disease.
According to Daniel Ives, an analyst at Wedbush, the deliveries were “better than predicted considering supply chain difficulties.”
Tesla sold 295,324 Model 3 cars and Model Y sport utility vehicles, as well as 14,724 Model S luxury sedans and Model X premium SUVs, according to the company
As a result of the Ukraine conflict, gas prices are likely to skyrocket, boosting demand for electric cars. However, economists say that a scarcity of inventory and increased vehicle pricing will limit sales.
After Musk warned the US electric automaker was suffering considerable inflationary pressure in raw materials and logistics as a result of Russia’s invasion of Ukraine, Tesla raised prices in China and the United States in March.
Toyota, GM, and Hyundai Motor reported lower first-quarter sales in the United States than a year ago on Friday. In October, Musk announced that Shanghai had surpassed the output of the company’s first facility in Fremont, California. Because production at Tesla’s new facilities is projected to ramp up slowly in their first year, the two factories are key to the company’s objective of increasing deliveries by 50% this year.
Tesla began shipping cars built at its Gruenheide, Germany, facility in March, and deliveries of cars made at its Austin, Texas, plant were expected to begin soon.
Tesla’s stock jumped after the firm said this week that it will seek investor approval to expand its share count to allow for a stock split.
