Tesla triples deliveries of electric cars but share price tumbles

Tesla triples deliveries of electric cars but share price tumbles

Tesla triples deliveries of electric cars but share price tumbles

Tesla has been urging buyers to make use of the federal tax credit, with Musk reminding them on Twitter on Saturday that the benefit would drop to half at the beginning of 2019.

Tesla will cut the price of its Model 3, Model X and Model S vehicles.

Tesla boss Musk is under intense pressure to deliver on production promises, with the Model 3 billed as its first mass market vehicle and its path to profitability.

While Tesla reported yet another historic quarter that saw the company delivering an average of 1,000 vehicles per day, Wall Street has not taken kindly to the electric auto maker's Q4 2018 results. With the adjustments in place, the reduction of the $7,500 federal tax credit to just $3,750 would likely not weigh down customers as much.

It built 86,555 vehicles in the fourth quarter, including 61,394 of its flagship Model 3 sedans.

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Shares of electric auto and solar panel maker Tesla Inc. tumbled Wednesday morning after the company cut vehicle prices by $2,000 and announced fourth-quarter sales figures that fell short of Wall Street estimates.

The electric-car maker's shares fell by 9.3 percent, to 301.87, in early trading.

The company said in a statement before the markets opened that it delivered over 245,000 electric cars and SUVs last year, almost as many as all previous years combined. Wedbush Securities analyst Dan Ives told CNBC that Tesla's failure to meet Wall Street projection was something that his firm had been prepared for: "It was a move that was within the realm of possibility, but it caught investors off guard", he said.

Deliveries to customers in Europe and China will begin in February, the company said. The company tracks 22 analysts that forecast an average of 91,046 deliveries during the quarter, according to data Tesla noted. Tesla announced today that it is now dropping the price of that particular Model 3 by $2,000, bringing it to $44,000. Our inventory levels remain the smallest in the automotive industry, and we were able to reduce vehicles in transit to customers by significantly improving our logistics system in North America.

There remain significant opportunities to continue to grow Model 3 sales by expanding to global markets, introducing lower-priced variants and offering leasing.

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