Tesla Vehicle Deliveries Break Q3 Record

Tesla production continues to thrive despite the unfavorable conditions the automotive industry is currently facing. The fluid dynamic of the coronavirus (COVID-19) pandemic and a global semiconductor shortage have wreaked havoc on automaker’s ability to promise consistent production. Some manufacturers have had to temporarily shut down or hold back new vehicles’ features because of ongoing supply chain issues and workforce uncertainty.

To remedy current challenges, some manufacturers are pushing new protocols to reduce coronavirus transmission in their manufacturing plants and offices. Recently, President Biden and his administration met with a group of automakers to figure out a solution to the semiconductor shortage. Though, Tesla, it seems, has not needed the help. At least not with those specific issues.

Some quick thinking and supply chain shifting allowed Tesla to avoid the pitfalls of the semiconductor shortage, and now those early moves are paying off.

Tesla reports record Q3 vehicle deliveries

Tesla Model 3 sedan being assembled by robots. Tesla production was up to record levels in Q3 2021
Robots assemble Tesla Model 3 at the Tesla factory in Fremont, California | Mason Trinca/The Washington Post/Getty Images

In a Reuters report, Tesla said that it managed to break a Q3 record in vehicle deliveries. Q3 Telsa production surpassed wall street estimates. Apparently, Tesla CEO Elon Musk asked his employees to “go super hardcore” and push to close out the quarter on a high note. It appears that pep talk worked.

The report states that Tesla production saw an increase of 20% in the July through September period over the same period in the previous year. It was the sixth quarter in a row that Tesla Production saw an increase over the previous period.

According to analysts, one of the factors for Tesla’s jump is China increasing exports to Europe and Tesla releasing a lower-cost Model Y SUV.

Musk admitted that Tesla production did get hit with a “severe” parts shortage at the beginning of Q3, which inspired the CEO to ask his employees via an internal email to push for a finish to the quarter.

“The end of quarter delivery wave is unusually high this time,” Musk wrote in the email.

What was Tesla Production really like in Q3 2021?

Tesla logo written out in white on a black background.
Tesla | Getty Images

Globally, Tesla delivered 241,300 vehicles between July and September 2021, a 73% increase over the previous year. The Reuters report states that analysts expected Tesla to deliver 229,242 cars. While that is an oddly specific number for analysts to pick, Tesla’s production exceeded those expectations by over 12,000 vehicles.

While Tesla production was up in Q3, some of its major competitors in the EV market, such as General Motors and Honda, saw a decline in Q3 sales. The reasoning behind the lower sales for Tesla rivals could be attributed to the semiconductor shortage.

Of the 241,300 EVs that Tesla delivered, the company stated that 232,025 of the vehicles were Model 3 sedans and Model Y crossovers, while the remaining 9,275 vehicles were Model S sedans and Model X SUVs.

These results are certainly something for Tesla to be proud of. However, Elon Musk is already finding himself embroiled in another conflict as he speaks out against the U.S. government’s new EV tax credit proposal that strongly favors Tesla’s union-staffed competitors like Ford, General Motors, and Stellantis.

It seems like the more conflict Tesla faces, the better its sales are. Maybe that’s why Elon tends to stay in the news.

RELATED: Elon Musk Thinks The Chip Shortage Will End Next Year