Reuters-Tesla Inc (Tesla Inc) on Friday announced record deliveries for the January-March quarter, exceeding Wall Street expectations, as sales growth of Model 3 and Model Y offset the impact of global component shortages.
Tesla said in a statement: “We are encouraged by the strong welcome of the Model Y in China, and it is rapidly developing to full production.”
It added: “The new Model S and Model X have also been widely acclaimed… and we are in the early stages of increasing production capacity.”
Tesla’s Shanghai plant began producing Model Y at the end of last year where the production of Model 3 sedans has begun in major markets. In February, even though demand usually fell during the Chinese New Year holiday that month, Tesla’s sales in China increased by 18% from the previous month.
According to data from Refinitiv, the electric car manufacturer delivered 184,800 vehicles worldwide in the first quarter, higher than the estimate of 177,822 vehicles.
This also exceeded the previous record of 180,570 in the previous quarter.
In February, due to a “parts shortage”, Tesla’s California plant halted production for two days, while Detroit automakers, including General Motors and Ford Motor Company, shut down some of their plants for several weeks.
Other automakers reported on Thursday that the U.S. downturn caused by the coronavirus last year caused U.S. sales to rebound in the first quarter, but sales were limited by global chip shortages, which forced many companies to cut production.
Tesla delivered 2020 Model S/X in the first quarter and 18,920 vehicles in the previous quarter, before the model update.
Ross Gerber, CEO of Gerber Kawasaki, said that the decline in sales of higher-priced and more profitable cars will lead to a decline in Tesla’s profit margins in the first quarter, but he predicts that in the second quarter “Blowout” results.
Although production is only a small part of competitors such as Toyota Motor Corporation, Volkswagen Corporation and General Motors, Tesla has become by far the most valuable car company in the world.
Reporting by Akanksha Rana and Arunima Kumar in Bengaluru and Hyunjoo Jin in San Francisco under editing by Matthew Lewis