Zinger Key Points
- Tesla had to shut down its Giga Shanghai twice during March, with the most recent closure beginning last Monday.
- Tesla managed to increase deliveries both year-over-year and sequentially, and maintained robust production.
- Discover Fast-Growing Stocks Every Month
Tesla, Inc.'s TSLA reported first-quarter deliveries that came in slightly below the consensus forecast. Nevertheless, the number represented a record quarterly tally for the EV maker.
Musk Applauds Team: CEO Elon Musk took to twitter to congratulate Team Tesla and its suppliers. His tweet was in response to the deliveries data shared by Tesla influencer Sawyer Merritt. Tagging Merritt and Tesla, the CEO said this was an "exceptionally" difficult quarter due to supply chain interruptions and China's zero COVID policy. "Outstanding work by Tesla team & key suppliers saved the day," he added.
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.
Related Link: As New Two Gigas Come Online, Here's A Look At How Much $1,000 Invested In Tesla At Giga Shanghai's Opening Is Worth Today
Why It's Important: Tesla had to shut down its Giga Shanghai twice during March, with the most recent closure beginning last Monday. As opposed to the original plan of resuming production by Friday, the company reportedly communicated internally that the closure will run through the weekend. Tesla's Giga Shanghai produces both Model 3 and Model Y sedans.
In the wake of the Ukraine crisis, prices of lithium and Nickel, which are used as raw materials for battery manufacturing, have seen steep price increases, forcing automakers to increase prices.
Tesla not only managed to increase deliveries both year-over-year and sequentially, but also maintained production at a robust clip. Once the macro and geopolitical challenges abate, Tesla could pick up the first quarter's slack, especially with the Giga Berlin and Giga Texas rolling vehicles off production lines to be delivered to customers.
Tesla closed Friday's session at $1,084.59, up 0.65%.
Photo: Courtesy of Ministério Das Comunicaç on Flickr
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
