Tesla’s 2020 1st quarter sales impress
In the first quarter of 2020, Tesla delivered 88,400 vehicles. 76,200 were Model 3s and the new Model Y and the remaining 12,200 were Model X’s and S’s. Unlike most automakers, Tesla’s shares gained around 15 percent on the news.
During the current COVID-19 crisis, many automakers are reporting massive losses, but not everyone. Some truck sales still look strong as well. Still, the overall rise in Tesla’s output numbers is remarkable given the circumstances. In the wake of the COVID-19 crisis, it’s also worth pointing out that the company is taking steps to help:
Special thanks to @Tesla for a donation of 40 ventilators to our team at NYC Health + Hospitals/Elmhurst #inQueens. These will be essential in the fight against the #coronavirus. pic.twitter.com/X3EwUxGFMl— NYC Health + Hospitals (@NYCHealthSystem) March 31, 2020
A few ruffled feathers
There has been some controversy about Tesla’s reluctance to shut down manufacturing when California requested (then required) it. Tesla stated that their assembly was essential and fought to keep it open. The Fremont, California facility stayed open until the Sheriff’s department closed it March 24, 2020.
Fortunately for Tesla, their Model Y production was ahead of schedule and they were able to meet their lofty production goals this quarter. Some critics site Tesla bent the curve by staying open for so long.
Also, in the wake of the COVID-19 crisis, CEO Elon Musk purchased over a thousand surplus ventilators for donation. He purchased them from ResMed, but unfortunately, they were BiPAP devices which are designed to treat sleep apnea.
It will still help hospitals who need such devices, but not in the way some had hoped. Fortunately, Musk recently tweeted, “”Giga New York will reopen for ventilator production as soon as humanly possible. We will do anything in our power to help the citizens of New York.”
Second quarter concerns
While the news is pretty rosy for Tesla right now, some experts are worried about a possible steep decline next quarter. Manufacturing in China is beginning to come back online, but U.S. production could be down for several more weeks.
The surplus that helped feed this quarter’s results will not be available the next go-around. Still, Tesla has proven to be capable of surprising critics and investors alike, so Q2 may still surprise.
You know one thing that won’t surprise? A Tesla is still better for your lungs than an old diesel Mercedes.