Tesla didn’t reply to any questions for the rationale for the manufacturing determination.

Even so, the automaker nonetheless managed to supply a file variety of vehicles in its most up-to-date quarter, because it constructed 180,338 of the Mannequin 3 sedan and Mannequin Y SUV, each of which being inexpensive fashions that made up practically 90% of the corporate’s total gross sales in 2020. The full edged previous Tesla’s earlier file set within the final three months of 2019 by practically 600 vehicles.

Tesla truly offered barely extra automobiles to prospects throughout the first three months of the yr than it constructed, utilizing automobiles it had in stock on the finish of of 2020. Its deliveries totaled 182,780 of the Mannequin 3 and Mannequin Y, and a couple of,020 of the Mannequin S and Mannequin X.

The Mannequin S, which has an $80,000 beginning worth, was the primary automotive Tesla ever utterly assembled itself, beginning manufacturing in 2012. The Mannequin X debuted in 2015.
Tesla mentioned it’s ramping up manufacturing of the Fashions S and X, which have been just lately up to date with redesigns. However automakers come out with up to date variations of automobiles on a regular basis with out shutting manufacturing for 3 months.
And this shutdown seems to be completely different from what CEO Elon Musk mentioned on Jan. 27, when he mentioned Tesla’s fourth quarter earnings with traders and analysts.

“We’re tremendous excited to announce the brand new Mannequin S and Mannequin X … are in manufacturing now and can be delivered in February,” he mentioned at the moment. “The Mannequin S… we’re truly in manufacturing now… The Mannequin X somewhat later.”

Gordon Johnson, an analyst with GLJ Analysis who’s a frequent critic of Tesla, pointed to Musk’s earlier feedback. “There’ll should be a proof. This clearly goes towards what Musk acknowledged,” he mentioned.
However Dan Ives, tech analyst with Wedbush Securities mentioned the general gross sales numbers for Tesla have been significantly better than even essentially the most bullish estimates. He mentioned {that a} scarcity of laptop chips, which has affected manufacturing of automobiles at automakers all over the world, left most analysts anticipating that Tesla would doubtless construct someplace between 150,000 to 170,000 automobiles within the quarter. He mentioned Tesla most likely shut manufacturing of the Mannequin S and Mannequin X vehicles due to the chip scarcity, and as an alternative use the chips it has to construct its larger quantity automobiles.

“The S and X are on a gradual sundown path,” Ives mentioned. “The demand for these fashions has been exhausted. It was telegraphed [Tesla] would construct a negligible variety of these within the quarter. Based mostly on demand, it is sensible they’re have been going to wager their chips on the Mannequin 3 and Mannequin Y. Tesla is now about these fashions, and the [upcoming] Cybertruck.”

Different automakers have shut manufacturing of a few of their much less in style fashions to maintain the provision of chips for his or her higher promoting fashions, equivalent to pickup vans and huge SUVs, which not coincidentally are their extra worthwhile fashions.

However Johnson mentioned Tesla doubtless was making as a lot as 5 instances as a lot revenue on every of the costlier Mannequin S and Mannequin X than on the Mannequin 3 and Mannequin Y.

“They gained on volumes, but are getting killed on margins,” he mentioned.

Tesla Model S upgrade comes with super fast Plaid Mode and 520 miles of range

However Tesla is dealing with extra competitors for its inexpensive fashions as conventional automakers supply their very own new electrical automobiles.

Through the first quarter Ford (F) began deliveries of the Mustang Mach-E, its solely present all-electric car. Morgan Stanley estimates that these gross sales are reducing into Tesla’s market share. Ford offered 6,600 to US consumers within the quarter.
Common Motors (GM) simply unveiled a brand new SUV model of its Chevrolet Bolt, its solely US EV for sale proper now. And Volkswagen (VLKAF) has overtaken Tesla in gross sales of EVs in lots of European market.