With their fleet of electrified vehicles crammed to the brim with chip-hungry displays and onboard sensors, you'd think the ongoing global silicon shortage would've hit Tesla
Tesla even had to shutter production at its Fremont, CA plant back in February due to a lack of chips. And in any other world, having fewer vehicles to sell would've resulted in fewer sales.
But this isn't any other world, and Tesla isn't any other car company. Over the first few months of 2021, Tesla managed to deliver 184,800 vehicles versus the 88,400 it managed to sell over the same time in 2020. Notably, 180,000 of the cars Tesla sold off consisted of just two models: the Model 3 and the Model Y, the latter of which only recently debuted in China.
According to Wedbush analyst Daniel Ives, Tesla's ability to beat the street's expectations in the first quarter amounts to a "paradigm changer." Despite the ongoing chip shortage, Ives believes that Tesla is on pace to deliver 850,000 vehicles in 2021. To Ives, Tesla's sales figures signal "pent up demand" for Tesla's flagship Model Y and Model 3's and could be a signal for an approaching "green tidal wave."
And his thesis doesn't seem far off when considering how the other "big three" U.S. automakers have also managed to smash expectations in the electric vehicle space. Ford
But of the big three U.S. automakers, GM
2021 is also shaping up to be a banner year for electric vehicles on the political front as well. Daniel Ives believes pent-up demand from consumers could lead Congress to expand the Electric Vehicle tax credit to as much as $10,000 per vehicle. Given that gas-guzzlers typically sell for $10,000 more than their electric counterparts, such a rebate would go a long way in leveling the playing field for EVs.
There's also President Joe Biden's recently announced $2.5 trillion infrastructure push. The White House's initial proposal has $174 billion earmarked for EV's including more incentives, rebates, tax credits. The proposal also contains plans to develop a network of 500,000 U.S. charging stations.
But, looking at the number of EV's sold in the first quarter, it doesn't seem Tesla nor the Big Three will need Congress' help to continue smashing sales records.
- 8. https://www.bloomberg.com/news/articles/2021-04-01/electric-car-stocks-climbing-back-on-biden-s-green-tidal-wave