Tesla's Success in Targeting the Chinese Market... First Quarter Sales Exceed Expectations

[Image source= Reuters Yonhap News]

[Asia Economy Reporter Park Byung-hee] U.S. electric vehicle manufacturer Tesla Motors delivered 184,800 vehicles in the first quarter of this year, an increase of about 4,000 units compared to the fourth quarter of last year, Bloomberg reported on the 4th (local time).

Bloomberg reported that while most automakers saw a decline in sales in the first quarter of this year due to semiconductor shortages and supply chain instability, Tesla's sales actually increased. Tesla's first-quarter deliveries exceeded analysts' estimates compiled by Bloomberg, which predicted 169,850 units.

Dan Ives, an analyst at Wedbush Securities, upgraded Tesla's investment rating from 'Neutral' to 'Outperform' and raised the target price from $950 to $1,000 in a report released that day. Analyst Ives added that under a long-term bullish scenario, Tesla's stock price could rise to $1,300. He also forecasted that Tesla's deliveries this year could exceed 850,000 units, with 900,000 units being possible.

Tesla does not disclose sales figures by region. However, it is expected that most of the first-quarter sales were from Model 3 and Model Y vehicles sold in the United States and China.

Investment bank Jefferies estimated that since Tesla's Fremont factory in California temporarily halted operations in February due to parts supply issues, the sales proportion from the Shanghai factory likely increased. Furthermore, since the Shanghai factory is highly profitable, it is expected to have contributed positively to profitability. The strong first-quarter performance can be interpreted as Tesla's sales performing well in the Chinese market.

Tesla also stated that sales figures for the Model Y in China are encouraging, and unusually high order volumes have been received for the newly released Model S and Model X.

Tesla currently produces the Model Y and Model 3 at its Shanghai factory. At the Fremont factory in California, Tesla manufactures the Model Y, Model 3, and the larger Model S and Model X. Tesla has been focusing on the Chinese market, including building its first overseas factory in Shanghai in 2019.

China's automobile sales are expected to increase this year for the first time since 2017. Premier Li Keqiang also announced at the National People's Congress that support for electric vehicles would be strengthened by increasing the number of electric vehicle charging stations.

Tesla stated that it has slightly underestimated the preliminary figures and that the final tally could be about 0.5% higher.

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