By Kirsten Korosec
View the original article here.
Tesla delivered 88,400 vehicles in the first quarter, beating most analysts expectations despite a 21% decrease from the previous quarter as the COVID-19 pandemic put downward pressure on demand and created logistical challenges.
Tesla said Thursday it produced 103,000 electric vehicles in the first quarter, about 2% lower than the previous period.
The deliveries and production figures beat most analysts expectations, causing Tesla shares to jump more than 10.4% in after-hours trading. Analysts, who had anticipated lower numbers due to the COVID-19 pandemic, had varying forecasts. A consensus of analysts by FactSeat expected more than 79,908 vehicles would be delivered while Reuters reported IBES data from Refinitiv forecast numbers as high as 93,399 vehicles.
The company, which sells directly to consumers as opposed to using dealerships, was able to beat those expectations in part because it continued to produce and deliver its electric vehicles to customers in spite of the COVID-19 pandemic. The pandemic has prompted city, county and state officials to issue stay-at-home orders that have directed non-essential businesses to close. While manufacturing is often exempt from these orders, pressure from the United Auto Workers as well as falling demand has prompted automakers, including GM, Nissan, Ford, Fiat Chrysler Automobiles, Toyota and Volkswagen suspended production at all U.S. factories.
Tesla also suspended production, beginning March 23, at its plant in Fremont, Calif. However, deliveries have continued.
While COVID-19 still affected Tesla, the company still managed to beat its delivery numbers from the first quarter of 2019.
Here’s a breakdown of the first quarter 2020 deliveries and production:
- Tesla delivered 88,400 vehicles (compared to 112,000 in Q4 and 63,000 in Q1 2019)
- Tesla produced 103,000 vehicles (compared to 105,000 in Q4 and 77,100 in Q1 2019)
This quarter deliveries included some Model Y vehicles, the newest addition to Tesla’s portfolio. Model Y production started in January and deliveries began in March according to Tesla.
Tesla also said that its new Shanghai factory, which is producing the Model 3 for Chinese customers, is achieving “record levels of production, despite significant setbacks.” Tesla didn’t provide any details on the levels of production at the Shanghai factory. The first public deliveries of Model 3 sedans produced at its Shanghai factory began January 7, one year after Tesla began construction on its first factory outside the United States.