Tesla beat Wall Street expectations with record deliveries in the January-March period, as strong demand for less costly versions offset the effects of a global parts shortage.
“We are excited by the Model Y’s positive reception in China, and we are rapidly approaching full production potential,” Tesla said in a tweet.
“The latest Model S and Model X have both received highly favourable reviews… and we are in the early stages of ramping up production,” the firm said.
Late last year, Tesla’s Shanghai factory began producing the Model Y in the main market where it also manufactures Model 3 sedans.
Tesla’s China revenues increased in February compared to the previous month, despite the fact that demand usually drops during China’s Lunar New Year holidays, which occurred that month.
According to Refinitiv numbers, the electric car manufacturer sold 184,800 cars globally in the first quarter, above expectations of 177,822 vehicles.
This is also higher than the previous high of 180,570 set last quarter.
Tesla’s California factory was shut down for two days in February due to “parts shortages.”
Wedbush analyst Dan Ives said, “We think China and Europe were especially robust this quarter.” He expects Tesla to sell more than 850,000 vehicles this year, owing to the Biden administration’s strategy of encouraging EV purchases as well as increasing global demand.
In the first quarter, Tesla shipped 182,780 Model 3/Ys, up 13% from the previous quarter. Deliveries of the more expensive S/Xs, on the other hand, fell from 18,920 to 2,020 during the time, ahead of model refreshes.
Tesla’s margins will be affected in the first quarter due to revenue declines of more profitable vehicles, according to Gerber Kawasaki CEO Ross Gerber, but he expects “blowout” results in the second quarter.
Other automakers, such as GM, posted a recovery in first-quarter US revenue from a coronavirus-related recession last year, but volumes were constrained by a global chip shortage that forced several companies to cut demand.
Despite producing a fraction of what competitors Toyota Motor Corp, Volkswagen AG, and General Motors do, Tesla has become the most profitable carmaker in the world.