“This was an *exceptionally* difficult quarter due to supply chain interruptions & China zero Covid policy,” wrote Elon Musk on Twitter. “Outstanding work by Tesla team & key suppliers saved the day.”
Despite being able to keep up a good delivery pace, Tesla failed to impress Wall Street, which expected Tesla to deliver around 317,000 vehicles in the first quarter. Two days of missed production at Giga Shanghai due to Covid-19 restrictions were probably responsible for this difference. Tesla is still expected to report a record quarterly profit in the next earnings call on April, 20.
Tesla’s results are no less impressive considering the market downturn, especially as other carmakers reported slowing production in the quarter due to supply chain issues. Tesla production is expected to increase fast as the new gigafactories in Berlin and Austin ramp up production in the second quarter. This should offset the problems with Gigafactory Shanghai, as the city of Shanghai went into a partial lockdown in recent days.
While Tesla does not release deliveries by region or model, the EV company does offer some details based on its platforms. As expected, Tesla Model 3/Model Y is the most popular lineup, with 295,324 combined deliveries. Model S/Model X duo totaled 14,723 deliveries which is still a good number. Tesla recently overhauled these models and the production still needs to catch up with demand.
Tesla vehicles’ prices have jumped around 30% over the past year, reflecting the higher cost of raw materials and logistics. This has not deterred people from buying, and analysts expect the EV maker to keep a fast increase in production numbers with each consecutive quarter in the following year. Tesla will most probably surpass 1.5 million vehicles delivered in 2022 which is around a 50% increase over 2021.
This was an *exceptionally* difficult quarter due to supply chain interruptions & China zero Covid policy.— Elon Musk (@elonmusk) April 2, 2022
Outstanding work by Tesla team & key suppliers saved the day.