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Tesla Inc.’s vehicle deliveries rose in the first quarter, but fell short of Wall Street expectations as the company grappled with global supply chain disruptions and a brief Covid-19 shutdown at its Shanghai plant.
“This has been an *exceptionally* difficult quarter due to supply chain disruptions and the China Zero Covid policy,” Tesla Chief Executive Elon Musk tweeted Saturday morning. Tesla employees and key suppliers “saved the day,” he added.
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The electric carmaker said on Saturday that it delivered 310,000 vehicles worldwide in the first three months of the year, up about 68% from the same period last year. As of the final quarter of 2021, deliveries remained roughly flat.
Tesla CEO Elon Musk Photographer: Andrew Harrer/Bloomberg via Getty Images
Tesla is massively expanding production capacity to meet booming demand and adding new factories to keep deliveries growing by an average of 50%. Wall Street expected Tesla to deliver around 317,000 vehicles in the first quarter, expected to post record quarterly earnings when the company reports earnings in a matter of weeks.
Other major automakers reported slower U.S. first-quarter sales due to vehicle shortages.
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Tesla’s largest factory in Shanghai, China, shut down production for the final four days of the quarter due to a Covid-19 outbreak in the city, raising questions about how that might affect deliveries for the quarter. The factory builds Model 3s and Model Ys, and last year Tesla sold more than 470,000 cars made at the factory.
The city of Shanghai of 25 million has been in partial lockdown in recent days amid an outbreak of Covid-19 cases. Residents near the Tesla factory have been ordered to remain indoors, public transport has been halted and traffic in the area has been severely restricted.
The Chinese factory was also closed for two days in March while the company tested employees for Covid-19.
“I don’t think it will significantly affect deliveries,” Tu Le, general manager of Sino Auto Insights, said ahead of the delivery results. “January, February, March are notoriously slow for vehicle sales in China.”
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He said sales figures will continue to be closely monitored as the impact of pandemic-related lockdowns on the country is unpredictable.
Model Y cars are pictured during the opening ceremony of the new Tesla Gigafactory for electric cars in Gruenheide, Germany, March 22, 2022. Patrick Pleul/Pool via REUTERS (Patrick Pleul/Pool via REUTERS / Reuters Photos)
Model S and Model X deliveries totaled 14,724. Tesla also delivered a total of 295,324 Model 3 sedans and Model Y compact sport utility vehicles. Tesla does not release deliveries by region. In addition, the company said it had produced 305,407 vehicles.
The Model 3 and Model Y are Tesla’s best-selling cars and the backbone of its production. Mr Musk said the company has no plans to introduce new vehicle models in 2022.
| ticker | security | Last | To change | To change % |
|---|---|---|---|---|
| TSLA | TESLA INC. | 1,084.59 | +6.99 | +0.65% |
Tesla began delivering the Model Y from a new plant in Germany last month. The company is slated to open another factory in Austin, Texas on Thursday. Word is that the plant in Germany will eventually ramp up to 500,000 vehicles per year, starting with the Model Y.
Global supply chain issues across all industries and record high inflation rates could hurt Tesla’s growth trajectory.
Mr. Musk tweeted last month that Tesla sees “significant recent inflationary pressures in commodities and logistics.” According to Bernstein Research, prices for the Model 3 and Model Y have increased by up to 30% over the past year.
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Still, analysts are forecasting that Tesla will continue its pattern of delivering more vehicles each successive quarter for the rest of the year, with full-year totals exceeding 1.5 million cars and SUVs.
Write to Meghan Bobrowsky at [email protected]