Sign up now for FREE unlimited access to Reuters.com Register April 2 (Reuters) – Tesla Inc (TSLA.O) on Saturday reported record deliveries of electric vehicles for the first quarter, largely satisfying analysts’ estimates, but output fell from the previous quarter as supply chain breaks and the suspension of the factory in China was aggravated. “This has been an * extremely * difficult quarter due to supply chain disruptions and China’s zero Covid policy,” CEO Elon Musk wrote on Twitter. “The outstanding work from 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 68% higher than last year. Wall Street was expecting deliveries of 308,836 cars, according to Refinitiv. Sign up now for FREE unlimited access to Reuters.com Register Tesla produced 305,407 vehicles from January to March, up from 305,840 in the previous quarter. Tesla, the world’s most valuable automaker, has tackled the supply chain’s pandemic and downtime better than its competitors, and its new Shanghai plant has led to growth. However, a recent increase in COVID-19 cases in China has forced Tesla to temporarily suspend production at its Shanghai plant for several days in March and April, as the city locks up to test residents for the disease. read more Deliveries were “better than expected, given supply chain problems,” said Daniel Ives, a Wedbush analyst, in a report. Tesla said it sold a total of 295,324 Model 3 sedans and Model Y sports vehicles, while delivering 14,724 luxury sedans and Model X premium SUVs. PRICE INCREASE Rising gas prices triggered by the crisis in Ukraine are expected to fuel demand for electric cars, but stock shortages and higher vehicle prices will boost sales, analysts said. Tesla raised prices in China and the United States in March after Musk said the US electric car maker was facing significant inflationary pressures on raw materials and logistics after the Russian invasion of Ukraine. “Impressive (deliveries) data from all headwinds,” said Gene Munster, chief executive of venture capital firm Loup Ventures, adding that he expects Tesla to continue to outperform other automakers in terms of sales growth. Toyota and GM Hyundai Motor on Friday reported lower sales in the US in the first quarter compared to a year earlier. read more Musk said in October that Shanghai had outsourced its plant in Fremont, California – the company’s first plant – to production. 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 increase slowly in the first year. Tesla began delivering vehicles manufactured at its plant in Gruenheide, Germany in March, and car deliveries to its plant in Austin, Texas, were due to begin in the near future. The company’s stock soared after Tesla this week unveiled plans to seek investor approval to increase the number of its shares to allow the shares to split. read more Tesla shares have risen about 3% so far this year, while shares of GM and Ford have fallen. Sign up now for FREE unlimited access to Reuters.com Register Report by Hyunjoo Jin in San Francisco, Akash Sriram, Akriti Sharma in Bengaluru. Editing by Maju Samuel and Alistair Bell, Diane Craft and Richard Chang Our role models: The Thomson Reuters Trust Principles.
