Despite flexible COVID-19 restrictions, the first quarter of 2022 was never an easy period for Elon Musk. Tesla has faced many challenges in maintaining the production and smooth supply of electric vehicles. In the first quarter of 2022, Tesla has made great progress in producing and delivering electric vehicles.
According to the official press release, Tesla delivered over 310,048 vehicles in the first quarter (Q1) of 2022. This is a huge progress for Tesla given the supply chain restrictions.
In a Tweet, Elon Musk has said that this was an exceptionally difficult quarter. The official press release from Tesla has stated that the production of Model S/X was 14,218 and Model 3/Y was 291,189. Similarly, the deliveries of Model S/X were 14,724, and Model 3/Y were 295,324. The agile team of Tesla has made an impressive progress on many fronts.
This was an *exceptionally* difficult quarter due to supply chain interruptions & China zero Covid policy.
Outstanding work by Tesla team & key suppliers saved the day.
— Elon Musk (@elonmusk) April 2, 2022
There is a stunning increase in the first quarter of 2022 as compared to the previous quarter’s 308,600 deliveries. Moreover, there is a 68% increase in deliveries from an earlier year. The pandemic has tried its best to limit the production from Tesla. However, the expert business strategy has taken Tesla to a higher level of innovation.
The zero-covid policy of China
The challenging part is that the production has fallen as compared to the previous year. Currently, the world is going through a major disruption and chaos because of the Ukraine and Russia wars. More so, the zero-covid policy of China is damaging the major industries and global businesses.
China has implemented Draconian restrictions to limit and end COVID-19. This has caused the temporary suspension of the Shanghai plant of Tesla. It dropped production significantly. The committed team of Tesla shouldered the burden and led the company towards momentous deliveries in the first quarter of 2022.
Inflation and disruption in the supply chain
This is indeed enormous progress, given the expectation from Wall Street was 308,836 cars according to Refinitiv data. Inflation and widespread supply chain disruption damaged the auto industries throughout the world. Some industries lagged behind while the more resilient and committed ones flourished.
Moreover, the highly important components, such as semiconductors, were in short supply. The prices of raw materials were increasing. Especially after the Russian invasion of Ukraine, things got worse. The supply of Nickel and aluminum dwindled as a result of the war.
Despite the odds, Tesla kept the promise to provide high-tech cars and electric vehicles with more zest. Tesla unveiled the delivery and production report during the Draconian restrictions of China. China is following the zero-covid policy, which is making trouble for auto industries and the supply chain of consumer goods.
BREAKING: @Tesla delivered an all-time high 310,048 vehicles in Q1, beating Wall St expectations of 309k.
— Sawyer Merritt 📈🚀 (@SawyerMerritt) April 2, 2022
More so, In March Tesla stopped producing electric vehicles in its Gigafactory Shanghai twice in March. Tesla is doing fantastic for the customers of China and the European market. It is producing 2,000 vehicles daily. So, it is important to know that last year, Testa produced over 180,000 vehicles and delivered nearly 185,000 vehicles.
Tesla is fighting against climate change. It is limiting pollution around the world through electric vehicles. To fulfill a green environment, Tesla is producing electric vehicles in large numbers.
More so, the Chief Executive of Tesla Elon Musk is planning to set higher goals to explore the universe. The increase in deliveries in the first quarter of 2022 is highlighting the enthusiastic resolve of Tesla’s team. Tesla has delivered over 310,048 electric vehicles, which is a record increase in deliveries.