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Tesla keeps up Model Y production, deliveries despite COVID-19 shutdown

Tesla keeps up Model Y production, deliveries despite COVID-19 shutdown
Tesla keeps up Model Y production, deliveries despite COVID-19 shutdown

Tesla Inc., the leading electric vehicle and clean energy company recently revealed that the production and deliveries of its electric compact crossover utility vehicle Tesla Model Y was quite ahead of the planned schedule, as the automobile company delivered the highest number of vehicles so far as compared to any first quarter to date.

Despite the coronavirus-related shutdowns, the production did not slow down to a great extent in the first three months of 2020. The company claims to have manufactured around 102,672 vehicles so far this year. The vehicle manufacturer’s solid deliveries in spite of the COVID-19 outbreak in the U.S. sent its shares up about 15% in extended trading.

As per sources close to the matter, the production and deliveries by Tesla were largely unaffected by the coronavirus pandemic, as the company only began to temporarily suspend production on March 24, at its San Francisco Bay Area vehicle unit. However, Tesla has not given any statement on the impact of the coronavirus pandemic.

The electric vehicle manufacturer unveiled that Tesla Model Y production started in January 2020 and deliveries began in March, prominently ahead of schedule.

According to analyst Daniel Ives, the deliveries went much better than it was thought of amid the fear of COVID-19 environment, which is causing potentially lethal respiratory illness across the globe.

Ives further added that China’s production and demand are likely to reinstate and should be a key growth driver over the coming year. However, tough challenges remain in the months ahead.

Earlier, Elon Musk, Chief Executive Officer of Tesla was reported to say that the demand for the Tesla Model Y is expected to be higher than any of the company’s other models combined. The Model Y is less expensive than the high-end Model X and taps into strong demand for SUVs.

 

Source credits: https://www.reuters.com/article/us-tesla-deliveries/tesla-sees-strong-model-y-production-deliveries-shares-rise-idUSKBN21K3A3