Tesla is Breaking Records Despite Industry Challenges
In the midst of inflation, supply shortages, and a global pandemic, Tesla has continued to dominate the electric vehicle scene. Check out their insane first quarter.
Everyone and their mom want to get their hands on a
Tesla
. And we get it. In 2021, the California electric carmaker beat out Mercedes-Benz
as the most popular luxury car brand.Learn how the world’s most valuable automaker has continued to thrive throughout a global pandemic and an unpredictable future.
COVID-19 spike and supply chain issues
According to
Cars.com
, “Tesla estimates it delivered 499,550 vehicles worldwide in all of 2020.” And in January 2021, the company boasted 24,237 new-car registrations. Though the first quarter of business in 2022 included China’s zero covid policy and supply chain interruptions, CEO Elon Musk credits his team and key suppliers for saving the day. Much more than Wall Street expected, “Tesla delivered 310,048 vehicles in the quarter, a slight increase from the previous quarter, and up 68% from a year earlier,” Cars.com tells us.
And from January to March, Tesla manufactured 305,407 automobiles, which is about 400 less than the previous quarter. The company’s new Shanghai factory has done them some good.
However, the factory’s location has posed some problems for production. Due to a “recent spike in COVID-19 cases in China [the company was forced] to temporarily suspend production at the Shanghai factory for several days in March and April as the city locks down to test residents for the disease,” according to
Reuters
. But Tesla has yet again come out on top. Reuters notes that the company sold 295,324 Model 3 sedan and Model Y SUVs, and delivered 14,724 Model S luxury sedans and Model X premium SUVs.
Inflation and global impact
Since Russia’s invasion of Ukraine, the electric car industry has suffered. With Russian oil under sanction and skyrocketing gas prices, consumers are considering electric cars for the first time. Unfortunately, now is the worst time to buy one.
With higher vehicle sales and a lack of inventory, the EV industry is struggling to keep up. According to Reuters, “Tesla in March raised prices in China and the United States after Musk said the U.S. electric carmaker
was facing significant inflationary pressure in raw materials and logistics
.”Prices for aluminum and nickel have significantly increased and computer chips and semiconductors are hard to come by. So that’s why none of our friends have received their Tesla yet. The chip shortage is actually the reason why Tesla has delayed the release of any new models this year.
Automakers like Hyundai Motor, Toyota, and GM had a worse first quarter than they did in the previous year. Yet, Tesla continues to outperform its competition with its sales growth. The Shanghai factory even out produced Tesla’s California Fremont factory.
On March 22, 2022, Tesla hosted a ribbon-cutting ceremony to celebrate the opening of its newest factory in Brandenburg, Germany.
“Tesla started delivering vehicles made at its factory in Gruenheide, Germany, in March, and deliveries of cars made at its plant in Austin, Texas, were to begin in the near future,” Reuters notes. Musk’s goal is to boost deliveries by at least 50% in 2022, which would mean about 1.4 million vehicles!
In 2022, Tesla stocks have increased by 3%, and unfortunately the same can’t be said about its rivals like Ford and GMC.
Insuring a Tesla
When you do finally get your Tesla delivered, make sure you’re in the know about how
insurance
works for this special electric vehicle. And if you’d rather spend your time playing with your new Tesla door handles
than researching car insurance policies, we definitely understand. 
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