Despite concerns over the ongoing COVID-19 pandemic, Tesla has managed to destroy expectations. The analysts were expecting Tesla to deliver around 77,000 cars this quarter. But they crushed those numbers and just had their best first quarter ever.
Tesla can weather this storm
With the logistical problems of producing and delivering vehicles in the midst of a global pandemic, expectations weren’t very high for Tesla. Even if things were to slow down, they’d still be in a good position. At the end of 2019, they had 6.3 billion dollars before their recent 2.3 billion dollar capital raise. They have the liquidity to make it through any setbacks.
But Tesla is still going strong. They delivered 88,400 cars in Q1, well beyond expectations. This is down from the insane 112,000 deliveries they hit last quarter, but it’s still their best Q1 ever.
Production is on par with last quarter despite them shutting down the Freemont factory for the last week of the quarter. They made 102,672 cars and hit record levels of production in the Shanghai factory despite “significant setbacks”.
Deliveries are only one part of success for the company. We won’t know the full story until they announce their Q1 financials, generally around the third week of April. But with the Model Y starting production in January and deliveries in March, well ahead of schedule, things seem to be looking good for Tesla. We’ll just have to see if their new “touchless delivery” allows them to continue this success through 2020.
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