By Rebecca Elliott
Tesla Inc. delivered a record number of vehicles in the first
quarter in the face of growing electric-car competition and
supply-chain challenges that have hit the global auto industry.
The Silicon Valley auto maker's roughly 184,800 global
deliveries in the first three months of the year eclipsed the high
set in the previous quarter and more than doubled from the same
period a year earlier, when Tesla idled its lone U.S. car plant in
the face of the coronavirus pandemic. Deliveries, which cruised
past analysts' expectations, were up about 2% from the year-end
quarter.
The electric-car maker handed over nearly 500,000 vehicles to
customers globally last year -- its first full year in the black --
and expects deliveries to advance more than 50% in 2021, though it
hasn't set a specific target.
Stiffer competition from the likes of Ford Motor Co. and
Volkswagen AG, whose all-electric vehicles are making inroads in
key markets, is increasing pressure on Tesla to accelerate
production growth and bring new models to market.
Analysts surveyed by FactSet on average expected Tesla to hand
over about 168,000 vehicles to customers in the first three months
of the year, which typically are the company's weakest for
deliveries. That forecast fell in recent weeks as auto makers
contended with a global shortage of semiconductors that forced many
companies to scale back output. Ford, for example, said Wednesday
that it was scheduling more downtime for some of its plants because
of tight chip supplies.
Tesla in February temporarily shut down its Fremont, Calif.,
factory because of parts shortages. The company also had warned of
lower first-quarter output of the Model S luxury sedan and Model X
sport-utility vehicle as it introduces updated versions.
The car maker's delivery figures come as several auto makers
reported rising U.S. vehicle sales in the first quarter, helped by
stronger consumer demand. Rival electric-vehicle makers in China,
such as NIO Inc., also have seen strong demand this year.
Deliveries of Tesla Model S and Model X vehicles in the first
quarter totaled around 2,020. Tesla handed over about 182,780 Model
3 sedans and Model Y compact sport-utility vehicles combined. Tesla
doesn't disclose deliveries by region.
Tesla also said it produced 180,338 vehicles in the quarter, all
of them Model 3s or Model Ys.
The company said the new Model S and Model X have been
"exceptionally well received," adding that it is in the early
stages of boosting production after installing and testing new
equipment.
The strong delivery numbers are poised to underpin what Wall
Streets expects to be robust first-quarter earnings for Tesla, due
in a few weeks. Sales are expected to top $10 billion, helping
generate around $470 million in profit, according to a FactSet
survey of analysts before the latest delivery figures were
posted.
Tesla is aiming to open two new vehicle factories this year, one
near Austin, Texas, and the other outside of Berlin. That plant
will be the company's first in Europe, the world's largest
electric-vehicle market as of last year, and is seen as key to
improving Tesla's fortunes in the region.
Tesla registrations in Western Europe slipped roughly 11% last
year compared with 2019, as auto makers such as Volkswagen and
Renault SA gained traction in the all-electric vehicle market,
according to Schmidt Automotive Research.
"Given Europe's continued global leadership in [electric
vehicle] penetration trends, we believe the Berlin launch is
especially crucial for Tesla," Credit Suisse analyst Dan Levy wrote
in a note this week. He said the factory would help Tesla reduce
costs and provide a steadier supply of vehicles to the region.
Tesla has said it hopes to begin delivering an electric pickup
truck and a long-delayed semitrailer truck to customers this year.
Chief Executive Elon Musk has said recently that a shortage of
battery cells is making it difficult to increase output of the
semitrailer.
Meanwhile, Tesla is facing increased regulatory scrutiny at home
and abroad. The Chinese government is restricting the use of Tesla
vehicles by military staff and others on national-security grounds,
The Wall Street Journal reported last month. Earlier in the year,
Chinese regulators summoned the company over consumer quality
complaints.
Tesla struck a conciliatory tone at the time, saying that it
"sincerely accepted the guidance of government departments" and had
"deeply reflected on shortcomings."
In the U.S., the National Highway Traffic Safety Administration
has launched probes into three recent crashes involving Tesla
vehicles, at least one of which law enforcement tied to the
company's advanced driver-assistance system known as Autopilot.
As of late March, the federal safety regulator had launched 27
investigations into Tesla crashes, all but four of which remained
open. Some, but not all, of those probes are related to
Autopilot.
Tesla also agreed earlier this year to recall some 135,000
vehicles over touch-screen failures.
Write to Rebecca Elliott at rebecca.elliott@wsj.com
(END) Dow Jones Newswires
April 02, 2021 11:02 ET (15:02 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
Tesla (NASDAQ:TSLA)
Historical Stock Chart
From Mar 2024 to Apr 2024
Tesla (NASDAQ:TSLA)
Historical Stock Chart
From Apr 2023 to Apr 2024