Is There a Safe Zone from COVID-19?

[Image source=Yonhap News]

[Asia Economy Reporter Park So-yeon] Tesla, the world's largest electric vehicle manufacturer, showed a strong start this year despite production disruptions and consumer slowdown due to concerns over the spread of the novel coronavirus (COVID-19).

According to foreign media and related industries on the 5th, Tesla delivered 88,400 vehicles to customers in the first quarter of this year, marking a 40% increase compared to the same period last year.

This figure is similar to the 89,000 vehicles predicted by automotive analysts.

Analysts initially expected Tesla to deliver 107,000 vehicles in the first quarter, but lowered their forecasts considering production halts due to COVID-19 concerns.

Tesla's stock price surged 17% to $531 in after-hours trading following the release of first-quarter sales results.

However, Tesla's stock price is nearly half of its peak two months ago.

Tesla's CEO Elon Musk initially downplayed COVID-19 during its early outbreak and said it would have little impact on performance.

Subsequently, Musk supported the fight against COVID-19 by producing oxygen masks at the U.S. factory, but the factory was shut down last month following government orders.

Despite the factory shutdown, Tesla's first-quarter production reached 102,700 vehicles, a 33% increase compared to the same period last year, thanks to strong production in January and February.

Experts predict that Tesla's U.S. factory, which has been halted since early last month, is unlikely to resume operations by June.

Tesla initially projected this year's vehicle production to be 500,000 units in the U.S. and 150,000 units in China.

This content was produced with the assistance of AI translation services.