Here are your top FOX Business Flash headlines for April 1st.
Tesla cars delivery It rose in the first quarter, but didn’t miss Wall Street expectations as the company struggled with global supply chain turmoil and a brief Covid-19 shutdown at its Shanghai plant.
“This was an *exceptionally* difficult quarter due to supply chain disruptions and China Zero Covid policy,” Tesla CEO Elon Musk Tweet Saturday morning. He added that Tesla employees and major suppliers “saved the situation.”
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The electric car maker said Saturday it delivered 310,000 vehicles globally in the first three months of the year, up about 68% from the same period a year ago. Deliveries have been roughly flat since the last quarter of 2021.
Tesla CEO Elon Musk Photograph: Andrew Harrer/Bloomberg via Getty Images
Tesla is significantly expanding its production capacity to meet rising demand, adding new plants as it tries to maintain growth in deliveries at an average of 50%. Wall Street expected Tesla to deliver about 317,000 vehicles in the first quarter to generate what is expected to be a record quarterly profit when the company reports earnings in a few weeks.
Other major auto manufacturers Reported US sales slowed for the first quarter due to vehicle shortages.
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Tesla’s largest plant, located in Shanghai, China, disrupted production for the last four days of the quarter due to the Covid-19 outbreak in the city, raising questions about how it affected deliveries in the quarter. The factory builds Model 3 and Model Ys, and last year, Tesla sold more than 470,000 factory-made cars.
Shanghai, a city of 25 million people, has been partially closed in recent days amid the outbreak Covid-19 cases. Residents near the Tesla factory were ordered to stay indoors, public transportation was halted, and traffic in the area was severely limited.
The China plant was also closed for two days earlier in March while the company tested employees for Covid-19.
“I don’t think it will materially affect deliveries,” Tu Le, Managing Director of Sino Auto Insights said before the delivery results. ‘January, February and March markedly slow for China’s auto sales.’
He said sales figures will continue to be closely monitored as the impact of the pandemic-related lockdowns on the country will be unpredictable.
Model Y cars are pictured during the opening ceremony of Tesla’s new Giga electric car plant in Gruenheide, Germany, March 22, 2022. Patrick Bloll/Paul via Reuters (Patrick Ball/Paul via Reuters/Reuters Photo)
Model S and Model X deliveries totaled 14,724. Tesla also delivered 295,324 Model 3 sedans and Model Y sports utility vehicles. Tesla does not release deliveries by region. In addition, the company said it produced 305,407 cars.
The Model 3 and Model Y are Tesla’s best-selling cars and the workhorse of its production. Mr. Musk said the company does not plan to introduce any new car models in 2022.
| tape | protection | the last | they change | they change % |
|---|---|---|---|---|
| TSLA | Tesla Corporation | 1,084.59 | +6.99 | + 0.65% |
Tesla began delivering the Model Ys from a new factory located in Germany last month. The company is scheduled to open another factory in Austin, Texas, on Thursday. It says the Germany plant will eventually raise up to 500,000 cars a year, starting with the Model Y.
Global supply chain issues across industries and record inflation rates may affect Tesla’s growth trajectory.
Mr. Musk tweeted last month that Tesla had been experiencing “significant inflation pressures lately in raw materials and logistics.” Model 3 and Model Y prices have jumped as much as 30% over the past year, according to Bernstein Research.
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However, analysts expect Tesla to continue its approach of offering more vehicles each consecutive quarter for the rest of the year with a full year total of 1.5 million cars and SUVs.
Write to Megan Bobrowsky at [email protected]
