Tesla Inc. vehicle deliveries rose in the first quarter, but lost Wall Street expectations as the company struggled with global supply chain shutdowns and a brief Covid-19 closure at its Shanghai plant. “This has been an * extremely * difficult quarter due to supply chain breaks and China’s zero Covid policy,” Tesla CEO Elon Musk wrote on Twitter on Saturday morning. Tesla employees and key suppliers “saved the day,” he added. GET FOX BUSINESS IN ENGINE BY CLICKING HERE The electric car maker said on Saturday it had delivered 310,000 vehicles worldwide in the first three months of the year, up about 68% from the same period a year ago. Deliveries have been almost constant since the last quarter of 2021. Tesla CEO Elon Musk Photographer: Andrew Harrer / Bloomberg via Getty Images Tesla is massively expanding its production capacity to meet growing demand, adding new plants as it seeks to maintain a 50% increase in deliveries. Wall Street expected Tesla to deliver about 317,000 vehicles in the first quarter to set an expected quarterly record when the company posted earnings in a few weeks. Other major automakers reported a slowdown in U.S. sales in the first quarter due to vehicle shortages. ELON MASK LAWYER EXCERPTS FROM EMINING LYRICS AT THE LAST SECOND LEGAL FILE Tesla’s largest plant, located in Shanghai, China, has been idle for the past four days of the quarter due to the Covid-19 epidemic in the city, raising questions about how it could affect quarter deliveries. The plant makes Model 3s and Model Ys, and last year, Tesla sold more than 470,000 factory-built cars. The city of 25 million people in Shanghai has entered a partial lockdown in the last days amid an epidemic of Covid-19 cases. Residents near the Tesla plant were ordered to stay indoors, public transport was disrupted and traffic in the area was severely restricted. The plant in China also closed for two days earlier in March, while the company tested employees for Covid-19. “I do not think it will significantly affect deliveries,” said Tu Le, chief executive of Sino Auto Insights, ahead of delivery results. “January, February and March are obviously slow for vehicle sales in China.” ELON MUSK UNDERSTANDS UAW FOR $ 2 MILLION PROMISE SCANDAL, TESLA SAYS MADE SOME OF MILLION WORKERS He said sales figures would continue to be closely monitored as the impact of pandemic-related lockdowns in the country would be unpredictable. Model Y cars are pictured at the launch 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) Deliveries of Model S and Model X vehicles totaled 14,724. Tesla also delivered 295,324 Model 3 sedans and Model Y compact sports vehicles. Tesla does not issue deliveries by region. In addition, the company said it 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 change Change% TSLA TESLA INC. 1,084.59 +6.99 + 0.65% Tesla began shipping the Model Y from a new plant in Germany last month. The company plans to open another plant in Austin, Texas, on Thursday. He says the German plant will eventually increase to 500,000 vehicles a year, starting with the Model Y. Global supply chain issues in all industries and record inflation could affect Tesla’s growth trajectory. Mr Musk wrote on Twitter last month that Tesla was seeing “significant recent inflationary pressures on raw materials and logistics”. Prices for the Model 3 and Model Y have soared by up to 30% last year, according to Bernstein Research. CLICK HERE TO READ MORE ABOUT FOX BUSINESS However, analysts predict that Tesla will continue its pattern of delivering more vehicles each consecutive quarter for the rest of the year with a total of 1.5 million cars and SUVs. Write to Meghan Bobrowsky at [email protected]
