On Friday, electric vehicle company Tesla revealed its vehicle delivery record which fell in line with the expectations of analysts. Tesla was able to scale through the hurdles that came as a result of the global shortage of chips, as the sale of its cheaper models helped it stay afloat irrespective of the effects of the global chip shortage which has left many automakers quite handicapped.
There has been a global shortage of chips which experts like Michael Dell and Cisco System’s Chuck Robbins say will last for quite a long time. The founder of Dell Technologies – Michael Dell, in an interview with Handelsblatt newspaper that occurred in May, said that the ongoing shortage in chips needed for electronic devices may persist for a few years. CEO of Cisco Systems – Chuck Robbins, on the other hand, told BBC in an interview that the global chip shortage should last for about six months and get better twelve to eighteen months after that.
Although Tesla managed the global chip shortage challenge better than a handful of other auto-making companies, Elon Musk – CEO of Tesla, has warned that these challenges could even become worse, making securing chips and raw materials a herculean task.
The electric vehicle company delivered 184,800 vehicles in the first quarter of 2021and Tesla’s Model 3 and Model Y, which are some of the most affordable Tesla brands made the most of the deliveries. The company also recorded impressive first-quarter earnings. Interests have spiked concerning the company’s second-quarter earnings, as many want to know if the recent drops in the price of Bitcoin would affect Tesla’s earnings. Tesla, at some point, accepted Bitcoin as a means of payment and would have even accepted Dogecoin too, but put a hold on Bitcoin because of concerns on how it was being mined, and promised the possibility of accepting it again once Bitcoin is being mined more safely.
According to the company’s figures, 201,250 vehicles were delivered. The company has been expected to deliver 200,258 vehicles according to data from Refinitiv.
Garrett Nelson, an equity analyst at CFRA Research said that “It was a solid quarter too volume-wise, but I view it as a modest disappointment”.
“Overall, the bulls are breathing a sigh of relief with these delivery numbers,” said Dan Ives, an analyst at Wedbush Securities said.
Tesla’s Model 3 sedans and Model Y crossovers –its cheapest models, made 99 percent of the delivery. More expensive models like Model S and Model X had a huge drop in deliveries.
“Our teams have done an outstanding job navigating through the global supply chain and logistics challenges,” Tesla said.
The company’s shares were up 0.3 percent after soaring to 3.3 percent in early trading on Friday.