Tesla reported record deliveries for the January-to-March quarter on Friday, surpassing Wall Street estimates as strong demand for less expensive models offset the impact of a global parts shortage.
“We are encouraged by the strong reception of the Model Y in China and are quickly progressing to full production capacity,” Tesla said in a press release.
“The new Model S and Model X have also been exceptionally well-received… and we are in the early stages of ramping production,” it added.
Tesla’s Shanghai factory began production of the Model Y late last year in the key market where it already produces the Model 3 sedan. In February, Tesla’s sales in China rose from the previous month, even as demand typically drops during China’s Lunar New Year holidays that occurred that month.
The electric carmaker delivered 184,800 vehicles globally during the first quarter, above estimates of 177,822 vehicles, according to Refinitiv data. This also surpasses its previous record of 180,570 reached in the last quarter.
In February, Tesla shut down its California plant for two days due to “parts shortages.”
“We believe China and Europe were particularly robust this quarter,” said Dan Ives, an analyst at Wedbush. He expects Tesla’s annual sales to exceed 850,000 vehicles this year, driven by the Biden administration’s push to boost electric vehicle sales and growing global demand.
Tesla delivered 182,780 Model 3/Y in the first quarter, up 13% from the previous quarter. In contrast, S/X deliveries dropped from 18,920 to 2,020 during the period, ahead of model updates.
Gerber Kawasaki CEO Ross Gerber said that the decline in sales of the more profitable cars would lead to weaker margins for Tesla in the first quarter but predicted “explosive” results for the second quarter.
Other automakers like General Motors Co. reported on Thursday a rebound in first-quarter sales in the U.S. from a coronavirus-induced slump last year, but volumes were constrained by a global chip shortage that forced many companies to cut production.
Tesla has by far become the world’s most valuable automaker, despite production being a fraction of rivals like Toyota Motor Corp, Volkswagen AG, and GM.
