On Friday, the electric car manufacturer Tesla announced the delivery volume in the third quarter. The company delivered 139,300 electric vehicles in the quarter, an increase of more than 50% from the second quarter, setting a new high again.
With the growing interest in electric vehicles, the sales performance of the entire automotive industry has been boosted, and the delivery of electric vehicle manufacturer Tesla also hit a new high in the third quarter.
This spring, when the epidemic spread and forced many companies to shut down, the auto industry was particularly hit. North American auto factories that usually produce more than 1 million vehicles per month produced less than 5,000 vehicles that month.
While airlines and other industries continue to struggle, the automotive industry has begun to recover. Some large automakers reported last month that sales in the US market have increased year-on-year. If this growth rate can continue for a year, the entire automotive industry is expected to sell 16 million cars and trucks, higher than the 13 million annual sales in June.
The leader of this recovery is electric car manufacturer Tesla. On Friday, the company announced its third-quarter deliveries, setting a record again. The steady growth in the Chinese and European markets offset the weakness in the US market. But Tesla did not provide a breakdown of sales in different regions.
It is reported that Tesla delivered a total of 139,300 electric vehicles in the third quarter, an increase of more than 50% from the second quarter. In the second quarter, the epidemic forced Tesla and other automakers to close factories, and many consumers have no plans to buy cars.
Tesla also stated that it produced 145,036 electric vehicles in the third quarter, an increase of about 76% from the second quarter. Affected by the epidemic, Tesla was forced to close its factory in Fremont, California from mid-March to mid-May. Fortunately, Tesla can rely on the newly built Shanghai Super Factory to continue production.
Although Tesla performed well in the third quarter, other automakers also performed better than earlier this year. Total vehicle sales in the third quarter fell by about 11% year-on-year, but automakers reported that sales in September this year increased from the same period last year. Toyota Motor said that the sales of light vehicles increased by 16% last month.
The recent increase in car sales is clearly driven by long-repressed demand, and people have to postpone car purchases when the epidemic spreads. In addition, due to automakers’ suspension of production for two months, the inventory of some models is very low. Due to the impact of the epidemic on households and businesses, car sales are now picking up. Some people spend their money on cars instead of traveling, restaurants, and entertainment. Others buy new cars because they want to avoid public transportation such as subways and buses, or because they have moved from cities to suburbs and small towns.
General Motors stated that its sales performance in the third quarter improved month by month, and its sales performance in September exceeded the same period last year. Elaine Buckberg, chief economist at General Motors, said in a statement: “Although the economy rebounded substantially in the third quarter, the rebound in auto retail sales was even greater.” “Ultra low. China’s auto loan interest rates boosted car sales, but the stronger driving force came from the demand triggered by the epidemic.”
But it is unclear how long the recovery of the auto industry will last. Michelle Krebs, executive editor of market research firm Cox Automotive, said that for some low-income buyers, credit is tightening, and the surge in confirmed cases may drag down the auto industry. “The U.S. epidemic has not been brought under control. Now that the U.S. President and First Lady have contracted the virus again, this has caused great concern among consumers.”
For Tesla, the record quarterly delivery volume is just the latest in a series of achievements. In recent months, the company’s share price has risen sharply, and it has become the world’s most valuable auto company.
However, despite the surge in deliveries, Tesla shares fell by about 7% at the close of trading on Friday because of concerns about whether the company can achieve its goal of selling 500,000 vehicles this year. In the first nine months of this year, the company has delivered 318,000 electric vehicles. To achieve this goal, more than 180,000 cars need to be sold in the fourth quarter, which requires Tesla to set a new record.
Royal Bank of Canada Capital Markets analyst Joseph Spak (Joseph Spak) said in a report to investors that this is “not an unachievable goal” but that it now “seems increasingly difficult” to achieve it.
However, in the long run, Tesla’s ability to sell nearly 500,000 vehicles per year represents a major shift for the company. More than a year ago, Tesla was still busy raising funds to quell fears that the company might run out of cash.
But Tesla’s super factory opened near Shanghai at the end of last year has already increased car production. The company also launched a new SUV Model Y with more space than Model 3. Many parts and components are common to Model 3.