Tesla Shares Plummet as Company Misses Vehicle Delivery Estimates - Again

Tesla Shares Plummet as Company Misses Vehicle Delivery Estimates - Again

Tesla Shares Plummet as Company Misses Vehicle Delivery Estimates - Again

Tesla said it produced and delivered a record number of vehicles.

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

Tesla plunged after disappointing Model 3 deliveries and an across-the-lineup price cut prompted concerns that the carmaker may bump up against a ceiling for demand.

The electric auto maker delivered 63,150 Model 3 vehicles in Q4 2018 versus the expected 63,698.

Tesla shares tumbled more than 8 per cent at the opening bell, to $304.69.

The price cut, which will apply to Model S, Model X and Model 3 cars, is in response to a reduction in green tax credits. Tesla stock (NASDAQ:TSLA) has fallen more than 7% on Thursday's trading, partly due to the company's 63,150 Model 3 deliveries falling slightly short of FactSet estimates of 64,900.

Tesla disappointed investors Wednesday after announcing that it delivered 90,700 vehicles during the fourth quarter, more than 2,000 vehicles short of what Wall Street analysts expected.

"We will focus even further on cost improvements while continuing to increase our production rate" during the fourth quarter, the company said at the time.

The $44,000 Model 3 is seen is the most important auto for Tesla, with founder Elon Musk touting it as a more affordable vehicle. Wedbush analyst Daniel Ives, meanwhile, said the price cut was "a potential positive" for demand, "but not what the bulls wanted to hear on the impact to profitability and ultimately the bottom line". 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.

Tesla shares fell in early trading after the electric auto maker missed industry forecasts for deliveries of its budget Model 3 vehicle and announced price cuts to offset lower tax incentives.

"There remain significant opportunities to continue to grow Model 3 sales by expanding to global markets, introducing lower-priced variants and offering leasing", Tesla said in a press release. With regions such as Europe and China expected to start receiving the electric sedan in the next few months, Tesla's numbers would likely remain healthy in the year to come.

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