(Reuters) – Tesla Inc on Friday posted document deliveries for the January to March quarter, beating Wall Road estimates, as strong demand for inexpensive fashions offset the affect of a world scarcity of elements.

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

“We’re inspired by the sturdy reception of the Mannequin Y in China and are shortly progressing to full manufacturing capability,” Tesla stated in a press release.

“The brand new Mannequin S and Mannequin X have additionally been exceptionally effectively 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 at the same time as demand often falls throughout China’s Lunar New Yr holidays which occurred that month.

The electrical-car maker delivered 184,800 automobiles globally throughout the first quarter, above estimates of 177,822 automobiles, based on Refinitiv knowledge.

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

In February, Tesla suspended its California plant for 2 days as a consequence of “elements shortages.”

“We consider China and Europe have 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 throughout the interval, forward of mannequin refreshes.

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

Different automakers like Common Motors Co on Thursday reported a rebound in first-quarter U.S. gross sales from a coronavirus-induced stoop final 12 months, however volumes have been capped by a world chip shortage that compelled many firms to chop manufacturing.

Tesla has turn out to be essentially the most priceless auto firm on the earth 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; Enhancing by Matthew Lewis