Tesla, the world’s leading electric car company, saw a sharp rise in worldwide sales in the first three months of the year on Saturday as it tackled supply chain problems and moved closer to the level of production equivalent to established luxury car makers such as BMW and Mercedes. Benz.
Tesla said it delivered 310,000 vehicles from January to March, more than 185,000 cars over the same period in 2021, almost in line with Wall Street expectations. The nearly 70 per cent increase was in stark contrast to major carmakers such as General Motors and Toyota, which saw big sales declines on Friday due to a lack of key components.
The increase in the first quarter depends on Tesla’s momentum compared to last year, when it nearly doubled sales, shortening to just 1 million cars, leaving Volvo and Subaru behind. Tesla has better deal with the industry-wide shortage of computer chips because its software expertise has allowed it to replace chips that are rare.
First-quarter sales were “a positive step in the right direction for the next step in Tesla’s growth,” Daniel Ives and John Katsingries of Wedbush Securities said in a note on Saturday, although they acknowledged that some analysts expected more.
Tesla said on Saturday that it was able to achieve sales growth “despite ongoing supply chain challenges and factory closures”. Tesla has often had to suspend production at its operations in Shanghai due to mandatory lockdowns by the local government.
Tesla’s first-quarter sales were almost unchanged from the fourth quarter of 2021, when it delivered 309,000 vehicles. The Tesla Model 3 sedan and the Model Y Sport utility vehicle account for almost all sales volume.
Some analysts believe that Tesla could now sell 2 million vehicles in 2022 when a factory near Berlin began producing the Model Y for European customers, challenging German carmakers who dominate the luxury market. Tesla sells more electric vehicles than any other car maker, and battery-powered cars are growing faster than any other range of vehicles. As gasoline prices rise and remain high, sales of those cars may increase further. Tesla’s $ 1 trillion market valuation is an indication that as far as Wall Street is concerned, it is on track to dominate the industry.
At the same time, the electric car market is becoming increasingly crowded as established carmakers offer more battery-powered models of late that resonate with buyers, such as the Ford Mustang Mac E or the Volkswagen ID.4. Traditional automakers could begin to capture a large share of the electric car market if, according to some industry executives, the shortage of semiconductors is alleviated by the end of the year.
Tesla will release profit and earnings figures on April 20, the company said on Saturday.