Tesla Inc said on Saturday that it delivered a record number of electric vehicles in the third quarter, exceeding Wall Street expectations after CEO Elon Musk directed employees to “go super hardcore” in order to meet a quarter-end delivery deadline.
Tesla has survived the chip problem better than competitors, with overall deliveries increasing 20 percent from the previous quarter’s record in the July-September period, marking the sixth consecutive quarter-on-quarter increase.
Analysts believe that growing exports to Europe and the introduction of a lower-cost Model Y helped enhance Tesla’s manufacturing in China.
According to an internal corporate email obtained by Reuters last month, Musk stated that Tesla experienced an exceptionally acute parts shortage earlier in the third quarter and urged employees to make a quarter-end delivery push.
“The end-of-quarter delivery wave is exceptionally high this time,” he explained in an email.
In the July-September quarter, Tesla delivered 241,300 vehicles worldwide, a 73 percent increase over the previous year. According to Refinitiv data, analysts projected the electric vehicle manufacturer to deliver 229,242 vehicles.
General Motors, Honda, and several of its larger competitors reported sales decreases in the United States in the third quarter, owing to a prolonged semiconductor scarcity. GM’s third-quarter US sales dropped nearly 33% to their lowest level in more than a decade.
Tesla said it delivered 232,025 Model 3 small cars and Model Y sport-utility vehicles to customers in the third quarter, as well as 9,275 Model S and Model X sedans.
Total output increased by more than 15% to 237,823 automobiles in the third quarter compared to the previous quarter.
According to Gary Black, portfolio manager at the Future Fund and a Tesla supporter, Tesla’s deliveries have been fueled by record deliveries in China, “putting to rest any notion China demand is declining.”
Tesla is under scrutiny from both regulators and the general public, as well as increasing competition from local rivals.
Tesla has not yet revealed September China sales figures, but its Shanghai manufacturing exported more than two-thirds of its vehicles to Europe and Asia in August.