Tesla announces record Q1 deliveries despite coronavirus complications

Tesla shares enjoyed yet another bump Thursday after the company announced record first-quarter deliveries of more than 88,000 electric cars, making it one of the few automakers to emerge from Q1 with anything resembling a positive outlook.  

Like many automakers currently feeling the pinch, Tesla was forced to spin down operations at its Fremont, California, facility in the face of a county-mandated coronavirus shutdown order.

Production continued for several days after the order was given, as Tesla stubbornly insisted it qualified as an essential business; the Alameda County sheriff ultimately overruled Tesla’s representatives, shuttering the facility on March 24. 

Tesla said Thursday that production and deliveries of its Model Y sport utility vehicle were significantly ahead of schedule, as the company announced its highest first-quarter delivery numbers in its history.

The company’s solid deliveries despite the coronavirus outbreak in the United States sent its shares up about 15% in extended trading.

Tesla delivered 88,400 vehicles in the first quarter, including 76,200 Model 3‘s and Y’s and 12,200 Model S’s and X’s.

The electric carmaker said Model Y production started in January and deliveries began in March. The coronavirus-related shutdown at the California factory is likely to affect production of the Model Y going forward. But Tesla said that its Shanghai factory in China continued to achieve record levels of production, despite significant setbacks.

Webush analyst Daniel Ives described the deliveries as “better than feared in a COVID-19 environment,” referring to the potentially lethal respiratory illness caused by the coronavirus.

“It appears China production and demand are starting to rebound and should be a key growth driver over the coming quarters, although clear challenges remain in the months ahead,” he added.

Demand for the Model Y is expected to be higher than for all of Tesla’s other models combined, Chief Executive Elon Musk has said in the past. The Model Y taps into strong demand for SUVs and is much less expensive than the high-end Model X.

(Reporting by Reuters contributed to this story.)