Tesla on Friday posted report deliveries for the January to March quarter, beating Wall Road estimates, as strong demand for inexpensive fashions offset the impression of a worldwide scarcity of elements.

“We’re inspired by the robust 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 facility began manufacturing of the Mannequin Y late final yr 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 12 months holidays which occurred that month.

The electrical-car maker delivered 184,800 automobiles globally throughout the first quarter, above estimates of 177,822 automobiles, in response to Refinitiv information.

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

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

“We consider China and Europe had been significantly strong this quarter,” stated Dan Ives, an analyst at Wedbush. He expects Tesla’s annual gross sales to exceed 850,000 automobiles this yr, 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 Normal Motors Co on Thursday reported a rebound in first-quarter U.S. gross sales from a coronavirus-induced droop final yr, however volumes had been capped by a worldwide chip shortage that pressured many corporations to chop manufacturing.

Tesla has change into probably the most worthwhile auto firm on this planet by far, regardless of manufacturing that could be a fraction of rivals akin to 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)