Elon Musk’s Tesla beats expectations on record deliveries
Tesla has reported a record quarterly profit, beating Wall Street estimates after a huge rise in deliveries in the three months to March.
Total revenue soared 74 per cent year-on-year to $10.39bn in the first quarter, generating a $438m net profit. Tesla said this was primarily achieved through “substantial growth” in vehicle deliveries.
The auto industry has faced difficulties because of a production slowdown as a result of the global chip shortage. Companies like General Motors, Ford and VW have been forced to slow production but Elon Musk’s company appears to have bucked the trend.
Earlier this month Tesla recorded delivery of 184,800 vehicles globally in the first quarter, beating expectations after strong demand from China. Solid demand for its electric cars helped to offset the impact of the global shortage of chips.
Looking forward the company said it plans to grow its manufacturing capacity “as quickly as possible”. The first deliveries of the new Model S should start shortly with production rate in its existing Shanghai Gigafactory said to be improving quickly.
In January Musk said he expected both Berlin and Texas facilities to start production later this year, and Tesla today said both are “making progress”.
“Over a multi-year horizon, we expect to achieve 50 per cent average annual growth in vehicle deliveries,” the carmaker said. “The rate of growth will depend on our equipment capacity, operational efficiency and stability of the supply chain.”
Tesla is in prime position given President Biden’s push to expand EV purchase incentives. That said Musk’s company is facing increasing competition given the increasingly crowded market with a bunch of new models.
Additionally the company is under investigation in the US following a fatal car crash and a protest in China.
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