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Record Tesla’s 2021 Q1 deliveries overshadow auto industry’s challenges

Record Tesla's 2021 Q1 deliveries overshadow auto industry's challenges
Justinas
Baltrusaitis
1 year ago
2 mins read

Electric vehicle manufacturer Tesla (NASDAQ: TSLA) has delivered a record quarterly number of cars during Q1 2021, aided by an expanding market and new production technology.

A press statement from the firm indicates that 184,800 vehicles were delivered while production stood at 180,338 cars during the quarter. The deliveries surpassed the Q4 2020 figure of 180,570 vehicles.

The company links the deliveries that surpassed analysts’ expectations to the Model Y’s positive reception in China. Earlier estimates by FactSet projected the firm would deliver about 168,000 vehicles.

In terms of specific vehicles, the Palo Alto-based firm only produced the Model 3 sedans and Model Y SUVs. The company did not produce the Model S sedans and Model X SUVs.

Tesla ramps up output amid growing competition

A total of 2,020 Model S and Model X vehicles were delivered, accounting for just 1% of Tesla’s 2021 total deliveries. The Model 3 and Model Y deliveries stood at 182,720. Following the sales, analysts have hailed the firm despite the supply-chain challenges that hit the global auto industry.

Tesla CEO Elon Musk had earlier indicated that the Model X would be produced later on without giving a specific timeline. According to Musk:

“We have been able to bring forward the Plaid Model S and X – Model S will be delivered in February and Model X a little later.”

For the 2020 full year, Tesla’s annual sales rose by 36%, with the manufacturer delivering a total of 499,550 cars.

Besides surging interest from the Chinese market, Tesla noted that it accelerated production after a piece of new production equipment was tested and installed during the quarter. The company has been ramping up output amid growing competition from rivals like Ford Motors and Volkswagen.

Tesla is also working towards opening two more production plans this year in Texas and Berlin. The European plant is touted to improve Tesla’s presence in Europe.

Tesla’s growth facing hurdles from key markets

However, Tesla’s path towards holding its position as the top electric vehicle manufacturer faces several hurdles from the legal front. The Chinese government is moving to restrict the use of Tesla vehicles by military staff on national-security grounds. The restriction is based on alleged consumer quality concerns.

Additionally, United States regulators are investigating recent crashes involving Tesla self-driving vehicles. Already, Tesla plans to recall about 135,000 vehicles over touch-screen failures.

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Justinas Baltrusaitis
Author

Justin crafts insightful data-driven stories on finance, banking, and digital assets. His reports were cited by many influential outlets globally like Forbes, Financial Times, CNBC, Bloomberg, Business Insider, Nasdaq.com, Investing.com, Reuters, among others.

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