(Reuters) – Tesla Inc on Friday posted document deliveries for the January to March quarter, beating Wall Avenue estimates, as stable demand for cheaper fashions offset the influence of a worldwide scarcity of components.

FILE PHOTO: A Tesla emblem on a Mannequin S is photographed within a Tesla dealership in New York, U.S., April 29, 2016. REUTERS/Lucas Jackson/File Photograph

“We’re inspired by the robust reception of the Mannequin Y in China and are shortly progressing to full manufacturing capability,” Tesla stated in an announcement.

“The brand new Mannequin S and Mannequin X have additionally been exceptionally properly obtained … and we’re within the early levels of ramping manufacturing,” it added.

Tesla’s Shanghai manufacturing unit began manufacturing of the Mannequin Y late final 12 months in the important thing market the place it already produces Mannequin 3 sedans. In February, Tesla’s China gross sales jumped from the earlier month whilst demand normally falls throughout China’s Lunar New 12 months holidays which occurred that month.

The electrical-car maker delivered 184,800 automobiles globally through the first quarter, above estimates of 177,822 automobiles, in keeping with Refinitiv knowledge.

This additionally exceeds its earlier document of 180,570 achieved final quarter.

In February, Tesla suspended its California plant for 2 days attributable to “components shortages.”

“We consider China and Europe had been notably strong this quarter,” stated Dan Ives, an analyst at Wedbush. He expects Tesla’s annual gross sales to exceed 850,000 automobiles this 12 months, fueled by the Biden administration’s coverage of boosting EV gross sales and by rising international demand.

Tesla delivered 182,780 Mannequin 3/Ys within the first quarter, up 13% from the earlier quarter. In distinction, deliveries of pricier S/Xs slumped from 18,920 to 2,020 through the interval, forward of mannequin refreshes.

Gerber Kawasaki CEO Ross Gerber stated gross sales declines of the extra worthwhile automobiles would result in weaker margins for Tesla within the first quarter, however he forecast “blowout” outcomes for the second quarter.

Different automakers like Normal Motors Co on Thursday reported a rebound in first-quarter U.S. gross sales from a coronavirus-induced droop final 12 months, however volumes had been capped by a worldwide chip shortage that compelled many corporations to chop manufacturing.

Tesla has turn out to be probably the most invaluable auto firm on the planet by far, regardless of manufacturing that may be a fraction of rivals resembling Toyota Motor Corp, Volkswagen AG and GM.

Reporting by Akanksha Rana and Arunima Kumar in Bengaluru and Hyunjoo Jin in San Francisco; Modifying by Matthew Lewis