Tesla triples deliveries of electric cars but share price tumbles

Ahead of the price cut announcement, chief executive Elon Musk urged Tesla customers to make use of federal tax credits.

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 United States demand linked to the shrinking tax credit.

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.

Shares of electric auto and solar panel maker Tesla Inc. tumbled Wednesday, Jan. 2, 2019, morning after the company cut vehicle prices by $2,000 and announced fourth-quarter sales figures that fell short of Wall Street estimates.

Tesla's vehicle deliveries fell short of Wall Street analysts' expectations as the Silicon Valley automaker wrestles with the realization that its federal tax credits are quickly running out. The Model 3 Long Range starts at $52,200 and the Performance-which in October added the Performance Upgrade at no extra charge-lists at $63,200.

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.

More news: Pogba enjoying "different style" after Mourinho exit

Tesla has released its production and delivery figures for the fourth quarter of 2018, capping off what could only be described as a historic year for the electric vehicle maker.

Tesla shares fell 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 US.

Ives added that Tesla shares are "hypersensitive to any issue around Model 3" and that it will remain a stock that is "guilty until proven innocent" until it discloses quarterly earnings figures next year.

In the fourth quarter, Tesla delivered 63,150 Model 3s, 13,500 Model S sedans and 14,050 Model X SUVs.

'The price cut is what's driving the stock lower, as it openly acknowledges the sunset of subsidy dollars is a material headwind, ' Craig Irwin, an analyst with Roth Capital Partners. Global deliveries in Europe and China will start in February 2019.

Tesla recognizes that these incentives are major selling points for their vehicles - that's why the company formed the "EV Drive Coalition" with other prominent EV makers in late 2018. The company's production grew to 86,555 vehicles, up 8 per cent from the high set in the past quarter. Analysts polled by data provider FactSet expected 92,000.

(Copyright © 2015. All Rights Reserved.)
 
Recommended

Trump on shutdown: I'll wait whatever it takes to get wall funds
Border Patrol, says that while the organization does not support the shutdown, it does support the border wall. Senate will return on Thursday and consider business if a deal is reached on government funding.

Netflix Reveals ‘Stranger Things’ Season 3 Release Date in Cryptic Trailer
The minute-long New Year themed teaser features archival footage of Dick Clark's New Year's Rockin' Eve from 1984. In a new teaser, the streaming network revealed that the 1980s-set series will officially return on July 4, 2019.

Latest Colorado Weather Forecast: Turning Colder With Snow Tomorrow
It also could get several inches of snow Wednesday night, as well as up to 7 inches on Thursday, the weather service said. An additional 1 to 3 inches of snow may fall from Thursday night to Friday, which is enough to make roads slippery again.

That's entertainment: Mayweather cashes in with first-round knockout
Pacquiao clearly alluded to Mayweather's three-knockdown, first-round demolition of Japan's Nasukawa on Monday in Saitama, Japan . Mayweather was jovial in the opening seconds of the exhibition, throwing very lazy punches and smiling across the ring.

Queen Elizabeth's Christmas Address Talks About Meghan Markle, Importance Of Family
The former " Suits " star could be seen placing a protective hand on Kate's back as the pair made their way inside the gates. According to reports, unease between Meghan and Kate is the reason why the royal duo will move to Windsor early next year.

US Supreme Court rejects Trump request to enforce asylum ban
A federal judge in California quickly blocked the order, and the 9th US Circuit Court of Appeals agreed. New Justice Brett Kavanaugh and three other conservative justices sided with the administration.

Here Are Three Crazy Market Statistics on a Wild Day of Trading
All three major US indices jumped sharply on Wednesday, the first trading day after the worst Christmas Eve session on record. Gains in banks, retailers and health care companies are outweighing losses in energy stocks and elsewhere in the market.

8-year-old Guatemalan migrant dies in U.S. custody on Christmas Day
CBP announced last week that it would begin informing Congress and the media within 24 hours after someone dies in its custody. The father and son were not identified, and the agency said it would release more details "as available and appropriate".

Trump blames Dems for deaths of migrant children on the border
But he added: "Illegal immigrants, overwhelmingly, are not bad people", describing many migrants as victims of traffickers. Trump also suggested Friday that shutting down the border with Mexico would somehow generate "profit" for the U.S.

Hezbollah Leaders Targeted, Reportedly Hit in Israeli Airstrike, U.S. Official Says
Syrian eyewitnesses and video on social media showed what appeared to be intense fire on targets near the capital. Lebanon's National News Agency reported that Israel Air Force planes were operating over southern Lebanon.

Newsflash: Dow Futures Plunge after Wednesday’s Record Stock Market Rally
Wall Street traditionally considers a drop of 20 percent or more from recent highs to be a bear market. Traders work on the floor of the New York Stock Exchange (NYSE) on December 21, 2018 in New York City.

Saudi king orders major government reshuffle
Al-Jubeir's post was taken by Ibrahim al-Assaf, a long-time finance minister of the Kingdom. Musaed al-Aiban was appointed national security adviser.

Mount Etna: 4.8-magnitude natural disaster jolts Sicily
Debris of a partially collapsed house sits on the street in Fleri, Sicily, after an quake triggered by Italy's Mount Etna volcano. Mount Etna has been particularly active since July, with experts in Italy saying the volcano has been growing faster recently.

Mohamed Salah and Virgil van Dijk seal Christmas top spot for Liverpool
A corner was cleared as far as Salah, who delivered a teasing cross from which Van Dijk stretched to turn the ball home. We need to continue on that. "We started the game well, chances for both teams.

'Don't be fooled by his young face' - former team-mates back Solskjaer
Alexis Sanchez has dismissed reports that he sent a celebratory text to Marcos Rojo after Manchester United sacked Jose Mourinho . I want the players to be the kids that love to play football and go out in front of the best fans in the world." .


More News

News
More News