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Tesla ramps up EV production as demand hits record high

Read time 2min 30sec
The Tesla Model S.
The Tesla Model S.

Tesla says it delivered 185 000 electric vehicles (EVs) in the first quarter of 2021, and the Elon Musk-owned company is ramping up its vehicle production, as global demand increases.

In a statement, the American EV and clean energy company says it produced just over 180 000 Model Y, Model S and Model X vehicles, and saw demand exceeding this number to reach 185 000 delivered vehicles.

Tesla’s Model X is touted by the company as having the highest power and quickest acceleration of any SUV developed by vehicle manufacturers. However, its rivals, according to critics, offer a better luxury experience.

The vehicle’s electric motors provide on-demand all-wheel drive and performance-car acceleration, while the interior is equipped with high-tech infotainment and driver-assistance features.

“We are encouraged by the strong reception of the Model Y in China and are quickly progressing to full production capacity. The new Model S and Model X have also been exceptionally well received, with the new equipment installed and tested in Q1, and we are in the early stages of ramping up production,” says the statement.

It adds the delivery count should be viewed as slightly conservative, as the company only counts a vehicle as delivered if it is transferred to the customer and all paperwork is correct.

Final numbers could vary by up to 0.5% or more. The company notes Tesla vehicle deliveries represent only one measure of the company’s financial performance and should not be relied on as an indicator of quarterly financial results, which depend on a variety of factors, including the cost of sales, foreign exchange movements and mix of directly leased vehicles.

“Statements herein regarding the timing and future progress of our vehicle production ramp are ‘forward-looking statements’ based on management’s current expectations and that are subject to risks and uncertainties. Various important factors could cause actual results to differ materially, including the risks identified in our SEC filings.”

The company’s net income and cash flow results will be announced along with the rest of its financial performance when it releases its first quarter earnings.

Tesla CEO Musk, who is a Bitcoin enthusiast, recently announced in a tweet that Tesla vehicles can now be bought in Bitcoin, making it the first big automaker to do so.

Tesla previously announcedin a Securities and Exchange Commission filing that it had invested heavily in the digital currency, buying $1.5 billion worth of Bitcoin.

In the US, orders for new Tesla cars can now be secured with the equivalent of a $100 deposit in Bitcoin.

While experts believe Bitcoin’s volatility will make the purchasing process complex, Musk said the Bitcoin purchase facility would be expanded to other countries later this year.

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