Tesla shares tumble after production figures disappoint

Tesla cuts prices on all models, reveals production numbers - Autoblog

Tesla Inc shares sank 8 per cent on Wednesday after the electric auto maker delivered fewer-than-expected Model 3 sedans in the fourth quarter and cut prices for all its vehicles in the United States in response to the loss of a green tax credit.

After several production and delivery snafus Tesla finally reached a self-imposed deadline to produce 5,000 Model 3s a week at the end of June.

Model 3 sales alone, for the full year, added up to more than 145,000 vehicles-not far from the 150,000 level, but falling short of some end-of-year estimates. In Q4 2018, Tesla produced a total of 86,555 vehicles, which is 8% more than its prior all-time-high in the third quarter.

In light of the news, Tesla shares tumbled 7.8 per cent in Wednesday's pre-market trading to $307.02.

Musk now plans to turn attention to filling Model 3 orders in Europe and China starting in February, which could help offset some of the potential drop in USA demand linked to the shrinking tax credit. He said the cut in prices was likely weighing on the stock.

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Even so, analysts had expected more of the electric carmaker, anticipating that it would complete 92,700 deliveries across its Model 3, Model S sedan, and Model X SUV.

The company delivered 8 percent more vehicles during the quarter, a new all-time high, but the numbers were fewer than expected by Wall Street.

Tesla's own internal tracking of Wall Street analysts show that its deliveries were in line with or above estimates, spokesman Dave Arnold said.

Tesla has been struggling to ramp up production of its Model 3 sedan, which is crucial to the company's long-term profitability. The company also announced plans during the fourth quarter to start selling a $45,000 version of the Model 3, before raising the price $46,000. The company tracks 22 analysts that forecast an average of 91,046 deliveries during the quarter, according to data compiled by Tesla. This is despite the electric vehicle maker only producing mid and high-priced variants for the Model 3, and deliveries only being exclusive to North America.

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