Electric cars

Tesla Delivers Record Vehicles in Q1; production falls as China shutdown weighs

Tesla Delivers Record Vehicles in Q1;  production falls as China shutdown weighs

A Tesla logo on a Model S is pictured inside a Tesla dealership in New York, U.S., April 29, 2016. REUTERS/Lucas Jackson/File Photo

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April 2 (Reuters) – Tesla Inc. (TSLA.O) announced record first-quarter electric vehicle deliveries on Saturday, in line with analysts’ estimates, but its production fell from the previous quarter due to supply chain disruptions and the suspension of a factory in China .

“This was an *unusually* challenging quarter due to supply chain disruptions and China’s zero Covid policy,” CEO Elon Musk tweeted.

Tesla delivered 310,048 vehicles during the quarter, a slight increase from the previous quarter and a 68% increase over the prior year. Wall Street expected deliveries of 308,836 cars, according to Refinitiv data.

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Tesla produced 305,407 vehicles in the January-March period, compared to 305,840 in the previous quarter.

Tesla, the world’s most valuable automaker, has boosted sales, weathering the pandemic and supply chain disruptions better than rivals and with its new factory in China’s Shanghai driving growth.

But a recent spike in COVID-19 cases in China has forced Tesla to temporarily halt production at its Shanghai factory as the city goes into lockdown to test residents for the disease. Read more

Deliveries “better than expected given supply chain issues,” Wedbush analyst Daniel Ives said in a report.

Tesla said it sold a total of 295,324 Model 3 sedans and Model Y sport utility vehicles, while it delivered 14,724 Model S luxury sedans and Model X premium SUVs.

PRICE INCREASE

Soaring gasoline prices spurred by the Ukraine crisis are expected to fuel demand for electric cars, but lack of inventory and rising vehicle prices would weigh on sales, analysts said.

You’re here increased its prices in China and the United States after CEO Elon Musk said the US electric car maker was facing significant inflationary pressures in raw materials and logistics following Russia’s invasion of Ukraine.

Tesla began delivering vehicles made at its plant in Gruenheide, Germany, in March and deliveries of cars made at its plant in Austin, Texas were expected to begin in the near future.

“Impressive (deliveries) considering all the headwinds,” said Gene Munster, managing partner at venture capital firm Loup Ventures, adding that he expects Tesla to outperform other automakers in terms of vehicle sales.

Toyota and GM, Hyundai Motor said Friday their first-quarter U.S. sales fell from a year earlier. Read more

Last year, cars made in China by Tesla accounted for about half of the 936,000 vehicles delivered worldwide. Tesla CEO Elon Musk also said in October that Shanghai had overtaken its factory in Fremont, California, the company’s first factory, in terms of production.

The two existing factories are key to Tesla’s goal of increasing shipments by 50% this year, as its new factories in Berlin and Texas are expected to see production slowly increase in their first year of production.

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Reporting by Hyunjoo Jin in San Francisco, Akash Sriram, Akriti Sharma in Bengaluru; Editing by Maju Samuel and Alistair Bell and Diane Craft

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