Although Teslasay (NASDAQ: TSLA) Shares have been declining recently, and the shares have risen by almost 700% since the beginning of 2020. So to keep investors excited about the future of the electric car, Tesla must continue to show its ability to grow rapidly. After all, the growth stock is for rapidly rising sales not only this year but also for the coming years.
Fortunately, Tesla’s recently released first quarter delivery report did not disappoint. The carmaker not only reported higher deliveries than in any quarter, but it well exceeded analysts’ expectations.
Image source: Tesla.
A record Q1
Tesla managed to deliver approximately 184,800 vehicles in the first quarter of 2021, with 109% higher than on an annualized basis and 2% consecutive.
Almost all of its deliveries were Model 3 or Model Y, the two cheaper vehicles of the company. Deliveries of Model S and X have almost come to a halt as Tesla has introduced new versions of the vehicles and their production is still in its infancy.
Tesla delivered a combined 182,780 Model 3 and Y vehicles, representing an annual growth of 140%. However, combined Model S and X deliveries of 2,020 decreased from more than 12,000 S and X deliveries in the previous year.
Model Y was probably the main catalyst for the growth of Tesla’s vehicle sales during the quarter. Tesla started manufacturing its Model Y for the first time in the factory in China during the fourth quarter of 2020.
“We are encouraged by the strong reception of the Model Y in China and are rapidly advancing to full production capacity,” management said in Tesla’s first-quarter updates.
Furthermore, even though deliveries of Model S and X declined sharply, Tesla continued to have good news about the two major flagship vehicles. “The new Model S and Model X were also exceptionally well received,” the company said, “with the new equipment installed and tested in the first quarter, and we are in the early stages of production.”
Analysts, on average, expected total quarterly deliveries closer to 170,000.
Vehicle production at a Tesla factory. Image Source: The Motley Fool.
Just getting started
Although Tesla’s Q1 deliveries have been impressive, it will only climb higher in the coming quarters than the company exports according to plan. In Tesla’s Q4 update earlier this year, management said it would deliver more than 750,000 vehicles by 2021. To achieve this, the automaker will need an average of 188,000 deliveries per quarter.
While it is always possible for Tesla to face unexpected challenges, the strong first quarter suggests that the company could easily take its lead this year. The addition of Model Y production at its Shanghai plant and the expected contribution of new production lines in Germany and Texas later in 2021 should provide more than enough production capacity for Tesla to surpass its leadership.
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