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Tesla Inc. Electric Vehicle Deliveries In the first quarter, it suggests that Chief Elon Musk’s bet on growth in China and Europe is beginning to bear fruit.
The results marked a strong start to a year in which Musk, the company’s chief executive, is relying on global operations to boost production and sales. Tesla from Palo Alto, California delivered 184,800 cars worldwide in the first three months of the year, beating the average estimate of 169,850 in a Bloomberg survey by analysts and surpassing the fourth quarter figure by about 4,000 vehicles.
The neighborhood was “a massive house in the eyes of the bulls,” Dan Ives of Wedbush wrote in a research note Friday. “We believe that China and Europe have been particularly strong this quarter, as the trajectory now puts Musk & Co. to exceed 850k for the year that is well ahead of whispered expectations ”.
Musk is heading to China – already the largest car market in the world, including for electric vehicles – to gain a foothold in competition from local electric vehicle companies, as well as Volkswagen AG. Car sales are expected to increase this year for the first time since 2017, and in March, Premier Li Keqiang told the National People’s Congress that the government will help increase the number of EV charging stations and battery replacement facilities.
Tesla’s volume differs from most other automakers, which are mainly declining in part due to electronic chip constraints, analysts at Jefferies said in a research note. “Actions should respond well to Q1 delivery dates.”
After a remarkable race in 2020, which saw an increase in share prices by more than 700%, Tesla shares fell by about 6% this year until April 1. Friday was a market holiday in the United States
“It was a brutal sale for Tesla and EV, but we think it will now be in the rearview mirror,” wrote Ives, who maintained a “neutral” rating on the shares.
“Strong reception”
Tesla recently refreshed the Model S sedan and the Model X, an SUV. Without model S and X the vehicles were manufactured in that quarter and only 2,000 were delivered in total.
“We are encouraged by the strong acceptance of the Y model in China and are making rapid progress towards full production capacity,” Tesla said in a statement. The new Model S and Model X they were also “exceptionally well received,” the company said, adding that it was in the early stages of production growth.
Tesla currently manufactures the Model S and X only at its factory in Fremont, California, and the smaller 3 and Y models both there and at its plant in Shanghai. He plans to build two more factories this year, one in Texas and others near Berlin. The company does not divide sales by geography, but the US and China are its largest markets and almost all sales were of models 3 and Y.
With production at the Fremont factory temporarily closing in February of parts supply problems, Shanghai’s Tesla plant with higher margin will account for a larger share of volume in the quarter, which should support profitability, Jefferies said in the note.
Chief Financial Officer Zachary Kirkhorn warned in January that production would fall due to the transition to renewed products, while the overall lack of semiconductors and delays at ports should also weigh in the quarter.
Tesla said the number of deliveries should be considered slightly conservative, and final figures could vary by up to 0.5% or more.
The quarterly delivery figure is widely seen as a barometer of demand for both Tesla vehicles and consumer interest in electric vehicles around the world as older carmakers launch their own electric cars.