Tesla Q1 Deliveries

Tesla announced record deliveries for the first quarter of 310 048 cars, an increase of 68% from a year earlier. On a rolling 12 month basis, this is also the first time they have delivered more than one million vehicles.

Production growth from Tesla has been exceptional. The company notes that the figure could have been even higher if it wasn't for supply disruptions and a production pause at their Shanghai factory because of city-wide Covid 19 restrictions. Most of the Teslas produced and delivered were the Model 3s or Model Ys. Only around 14 724 of the delivered cars were the higher-end Model S and X.

The rapidly rising price of nickel could cause problems for Tesla in future. Does this mean Tesla should invest in nickel mines, like they have done with lithium, to dodge accelerated price hikes? Only time will tell.

The pause in production at the Shanghai gigafactory is bad news since this plant was responsible for half of Tesla's production last year. Production should be back to normal soon though.

Growth for the rest of the year will come from ramping up production at the newly opened Texas and Berlin factories. We recommend that investors buy and hold Tesla shares.