Tesla delivers record cars in the first quarter; Production drops during China lockdown

A picture of the Tesla logo on a Model S inside a Tesla dealership in New York, US, April 29, 2016. REUTERS / Lucas Jackson / File Photo

APRIL 2 (Reuters) – Tesla Inc (TSLA.O) On Saturday, he announced record electric vehicle deliveries for the first quarter, largely in line with analyst estimates, but production was down from the previous quarter due to supply chain disruptions and factory suspensions in China.

“This has been an *exceptionally* difficult quarter due to supply chain disruptions and the China Zero Covid policy,” CEO Elon Musk said on Twitter. “Excellent work by the Tesla team and key suppliers saved the day.”

Tesla delivered 310,048 vehicles in the quarter, a slight increase from the previous quarter, and a 68% increase from the previous year. Wall Street had expected 308,836 vehicles to be delivered, according to Refinitiv data.

Tesla produced 305,407 vehicles from January to March, down from 305,840 in the previous quarter.

Tesla, the world’s most valuable automaker, has weathered the pandemic and supply chain disruptions better than its rivals, and its new factory in Shanghai has been driving growth.

But the recent surge in COVID-19 cases in China forced Tesla to temporarily suspend production at its Shanghai plant for several days in March and April as the city shuts down to test residents for the disease. Read more

The deliveries were “better than feared given the supply chain issues,” Daniel Ives, an analyst at Wedbush, said in a report.

Tesla said it sold a total of 295,324 Model 3 sedans and Model Y SUVs, while it delivered 14,724 Model S luxury sedans and Model X luxury SUVs.

high price

The skyrocketing gas prices caused by the Ukraine crisis are expected to increase the demand for electric cars, but the lack of inventory and high car prices will affect sales, according to analysts.

Tesla in March Raising prices in China and the United States After Musk, the American electric car maker, said: It was facing significant inflationary pressures in raw materials and logistics after the Russian invasion of Ukraine.

“It’s pretty impressive[deliveries]given all the headwinds,” said Gene Munster, managing partner at venture capital firm Loup Ventures, adding that he expects Tesla to continue to outpace other automakers in sales growth.

Toyota, General Motors and Hyundai Motor on Friday reported lower first-quarter sales in the United States than a year earlier. Read more

Musk said in October that Shanghai had overproduced the plant in Fremont, California, the company’s first. The two plants are critical to Tesla’s goal of increasing deliveries by 50% this year, as production at its new plants is expected to slowly increase in their first year.

Tesla began delivering vehicles made at its plant in Gruenheide, Germany, in March, and deliveries of vehicles made at its plant in Austin, Texas, were scheduled to begin in the near future.

The company’s stock rose after Tesla this week revealed plans to seek investor approval to increase the number of its shares to enable a stock split. Read more Tesla shares are up 3% so far this year, while shares of GM and Ford are down.

Additional reporting by Hyungju Jin in San Francisco and Akash Sriram and Akriti Sharma in Bengaluru; Editing by Magu Samuel, Alistair Bell, Diane Kraft and Richard Chang

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