Tesla shares dive after Model 3 delivery falls short of estimates, cuts prices
Overall, total production rose 8 percent to 86,555 vehicles. The company produced 61,394 Model 3s, up from a total of 53,239 Model 3s in the third quarter, but showed no improvement on the 5,000 per week rate it finally achieved at the end of the third quarter.
Tesla Inc shares sank 8 percent on Wednesday after the electric car 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.
The company said it delivered 63,150 Model 3s in the quarter, falling short of FactSet estimates of 64,900. Tesla shares are down 8.4 percent at $304.91 in pre-market trade.
Overall, total production rose 8 percent to 86,555 vehicles. The company produced 61,394 Model 3s, up from a total of 53,239 Model 3s in the third quarter, but showed no improvement on the 5,000 per week rate it finally achieved at the end of the third quarter.
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 said in its third quarter results that it would focus in the fourth quarter on further increasing its production rate and there were indications that Wall Street had been expecting higher numbers.
Starting Wednesday, the company said it will be reducing the price of Model S, Model X and Model 3 vehicles in the US by $2,000.
Tesla has been urging buyers to make use of the federal tax credit, with Chief Executive Officer Elon Musk reminding them on Twitter on Saturday that the benefit would drop to half beginning 2019.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Power of Compounding: How many years will it take to reach Rs 3 crore corpus if your monthly SIP is Rs 4,000, Rs 5,000, or Rs 6,000
Power of Compounding: Salary Rs 25,000 per month; is it possible to create over Rs 2.60 crore corpus; understand it through calculations
Reduce Home Loan EMI vs Reduce Tenure: Rs 75 lakh, 25-year loan; which option can save Rs 25 lakh and 64 months and how? Know here
Top 7 Large and Mid Cap Mutual Funds with Best SIP Returns in 5 Years: No. 1 fund has turned Rs 15,000 monthly SIP investment into Rs 20,54,384; know about others
New Year Pick by Anil Singhvi: This smallcap stock can offer up to 75% return in long term - Check targets
PSU Oil Stocks: Here's what brokerage suggests on these 2 largecap, 1 midcap scrips - Buy, Sell or Hold?
08:30 PM IST