On Tuesday, Wall Street analysts raised their forecasts for the quarterly car deliveries for the United States based electric car maker Tesla.
One of the market research firms noted that the third quarter would be the best ever quarter for the company even in the face of an unusual lack of components in the global auto industry, including an acute shortage of semiconductor chips.
In a staff letter earlier this month, Elon Musk encouraged staffers to “go extremely tough” to make up for production problems that were faced by the electric car maker early in the third quarter, and indicated that it was facing an abnormally large end-of-quarter wave of deliveries.
Their expectations for delivery of Tesla cars at the end of the third quarter was also propped up by analysts at Piper Sandler and RBC, who estimated that the company would be able to deliver a total of around 233,000. The prediction of Credit Suisse for the same period for deliveries was between 225,000 and 230,000 cars.
The statistics predicted above reflect a 65 to 67 per cent increase in the number of deliveries for the third quarter compared to the same quarter in the previous year. According to market data source Visible Alpha statistics, experts anticipated 222,700 Tesla vehicle deliveries in the third quarter as of Monday.
According to suggestions by analysts, the global semiconductor shortage, which has devastated almost all large global auto manufacturers worldwide, may have had a lower impact on the operations of Tesla.
“Tesla appears to have been less impacted by the shortage than other (automakers),” Credit Suisse’s Dan Levy said in a report, citing the decision of the company for a “quick pivot” to new microcontrollers and writing its own software for its vehicles.
According to Piper Sandler’s Alexander Potter, the third quarter would likely be the “strongest” ever for Tesla. As a reason for the anticipated record deliveries, he cited an increase in adoption of electric vehicles in Europe and China, as well as the increasing dominance of te market by the electric vehicles maker.
According to Refinitiv Eikon, Potter has a five-star rating for Tesla estimations and recommendations. His annual estimate for car deliveries by the company was raised by Potter has to 894,000 for the current year from his previous estimate of 846,000 cars. That would nearly treble last year’s total of 499,550 deliveries.
According to Credit Suisse’s Levy, China’s importance as a source of worldwide exports for Tesla is rising, with its Shanghai factory likely exporting approximately 55,000 vehicles in July-August, up from around 30,000 in the second quarter.
(Adapted from USNews.com)