Tesla bucks trend again to report increased car sales

Tesla bucks trend again to report increased car sales

Tesla once again bucked auto industry trend and reported an increase in car sales, despite the shortages of computer chips and other logistical woes that have forced other carmakers to significantly scale back production.

The company said it sold 310,000 cars in the first quarter, up only slightly from the 309,000 it sold in the fourth quarter of last year, but a 68% increase from the sales in the same quarter a year ago. Tesla was able to do that even though its two new factories — one outside of Berlin, the other outside of Austin, Texas, started producing and shipping cars only weeks ago. Tesla does not break down where its cars are produced or sold.

The company’s sales and production output were “better than feared” according to Dan Ives, tech analyst with Wedbush Securities. He said the Tesla results were impressive “in light of recent Covid shutdowns in China and massive logistics complications delivering units to customers in Europe. We believe roughly 20,000 to 25,000 units were pushed out of the first quarter into the second quarter due to the logistical and factory issues which makes this underlying demand number still look strong with a robust trajectory for the rest of 2022.”

Most other automakers have been forced by various supply chain problems to scale back production. Other automakers have not reported global sales, as Tesla did in its report, but the US sales numbers of companies that reported Friday showed sharp declines from a year ago. And it is clear that the logistic and production problems are not behind them.