Q3 results showed that Tesla shipped 241,300 EVs over the period, up 73% from the same quarter last year. In a nine-month period, Tesla’s electric vehicle shipments have doubled this year compared to last year. And this is despite the shortage of chips. Experts believe that not the most obvious reasons help the company to fight the shortage of components.
Related factors tried to list the resource Barron’sciting comments from industry analysts. Let’s start with the fact that Tesla’s business is not as big as that of traditional auto giants – on the scale of the global car market, electric vehicles represent only a few percent, and it is easier for their manufacturers to solve the problem of component shortages than companies that produce classic cars with internal combustion engines. Secondly, Tesla makes quite expensive electric cars, so even buying chips at higher prices does not significantly reduce the profit margin. In fact, as the quarterly report showed, Tesla even increased its profit margins in the past three-month period. In the US, it has raised prices for Model 3 and Model Y electric vehicles since February from $ 4,000 to $ 5,000, depending on the configuration.
It is also important to consider that electric vehicles use a more modern architecture, they need more semiconductor components produced using advanced lithographic technologies. Finding an alternative supplier in this segment is somewhat easier than in the overwhelmed industry sector, which produces components in huge quantities using mature technological processes.
Finally, Tesla’s supply chains are not as complex as those of the same GM, which in the third quarter cut the volume of vehicle shipments to the US market by almost a third, mainly due to a shortage of chips. Elon Musk has only two operating car assembly plants in California and Shanghai. Providing them with everything you need is somewhat easier than an extensive network of enterprises of the classic auto giant. Having a factory in China also helps Tesla get the electronics it needs faster, which it produces here. Chinese manufacturers of electric vehicles, by the way, also feel the shortage of components to a minimum. Tesla’s top three competitors shipped three times as many EVs in China in September as in February.
Experts expect Tesla to ship at least 230,000 electric vehicles in the current quarter, and the shortage of components is unlikely to seriously undermine its production capabilities. Of course, she also had to stop the conveyor for several days in the last quarter, but the company’s business growth is more limited by the availability of traction batteries in the required quantities than by the shortage of semiconductor components themselves.