Tesla Announces Better-Than-Expected Sales of Electric Vehicles in Q1 of 2021

Tesla car by Dylan Calluy Unsplash
Tesla car by Dylan Calluy Unsplash

Tesla (NASDAQ: TSLA) disclosed on Friday better-than-expected electric car sales for the 1st quarter of 2021. The news comes despite the massive production and supply-chain problems. Meanwhile, shares of TSLA plunged 0.5% in the extended trading Friday.

The U.S-based electric-vehicles manufacturer sold 184,000 cars in the first three months of 2021, exceeding the expectations of Wall Street. Tesla sold 182,780 of the Model 3 and Model Y. On the other hand, the high-end Model X and Model S reached 2,020. The company added that Model Y saw a high demand in China.

In 2020, Tesla delivered 499,550 cars, and analysts are expecting the electric-car manufacture to continue at the same fast pace of production this year. However, Tesla might face some problems including the global shortage of semiconductors; which caused auto-manufacturing to stagnate in several countries.

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Tesla warned of semiconductor shortage

In January, Tesla CFO Zach Kirkhorn warned of obstacles that Tesla would face in the 1st quarter of 2021, including the semiconductor issue.

“Specifically for Q1, our volumes will have the benefit of early Model Y ramp in Shanghai,” Kirkhorn said on a conference call. However, S and X production will be low due to the transition to the newly architected products. Additionally, we’re working extremely hard to manage through the global semiconductor shortage as well as port capacity, which may have a temporary impact.”

The company temporarily stopped producing cars in February, in its gigantic California factory. The “Technoking” and CEO of TSLA “Elon Musk” said that the problem was due to “parts shortages”. The halting of the production isn’t so frequent for car manufacturers.

Ironically, Wall Street is expecting that Tesla would sell over 800,000 cars this year; arguing that the new factories in Texas and Germany will push the production capacity.

Meanwhile, Wedbush Securities analyst Daniel Ives said in a Friday note that he is expecting TSLA to sell over 850,000 in 2021 since the demand for EVs is growing around the world, and President Joe Biden’s commitment to green infrastructure might also help.

“We believe these delivery numbers are a paradigm and sentiment shifter for the space going forward. It’s been a brutal sell-off for Tesla and EVs. But we believe that will now be in the rearview mirror,” Ives said.