Tesla Inc. (TSLA, Financial) released its first-quarter sales report on April 2. The electric carmaker delivered as many as 184,800 vehicles. The company also noted the first quarter was the best ever compared to any other previous quarters in terms of volume sold. Wall Street had anticipated 168,000 deliveries.
The company further broke down the numbers into a combined 182,780 units of Model 3 and Model Y deliveries.
Although Tesla issued its quarterly press release, the report lacked key information like region-wise production and delivery numbers.
2020 in review
As for full-year 2020, the company sold 499,550 vehicles (up 36% from 2019), which was slightly below its own guidance of half a million vehicles. The company sold a combined 442,511 Model 3s and Ys during that period. Despite the coronavirus pandemic and the resulting temporary shutdown of its factories, CEO and founder Elon Musk, at an annual shareholder meeting held earlier last year, said it would meet the sales target of 5,00,000 units.
Competition going forward
Automakers like General Motors Co. (GM, Financial) and Volkswagen AG (XTER:VOW3, Financial) produce and sell millions of gasoline-powered cars and trucks every year. These carmakers are also reinforcing their footing in the EV car market and are slated to roll out dozens of battery-powered vehicles in the coming years. Tesla's sales volume, on the other hand, is small compared to these stalwarts.
Detroit-based automaker Ford Motor Co. (F, Financial) has also begun delivering the electric crossover Mustang Mach-E. In addition, Rivian, a U.S. auto startup, said, starting next summer, it will sell an electric pickup truck and an SUV. Various other domestic automakers will follow suit. Therefore, challenges lie ahead for Tesla.
In order to help increase its production and sales, Tesla said it is building new manufacturing units in Austin, Texas and Brandenburg, Germany. Both vehicle assembly plants are projected to commence production later this year and are expected to hit full capacity in a year or two. The factory in Texas will be dedicated to the production of pickup trucks.
Targets
Tesla said it will strive to achieve its $20 million annual sales target over the next 10 years. The company plans to sell an EV car priced at $25,000 by 2023, which could spell trouble for gasoline-powered cars.
Disclosure: I do not hold any positions in the stocks mentioned.
Read more here:
- Ford Records 1st-Quarter Sales Growth
- General Motors Reports 1st-Quarter Sales Numbers
- Lululemon Athletica's Profit Tops Estimates on Robust Demand for Workout Gear
Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.
