Tesla shares sank 8 per cent today after the car maker delivered fewer-than-expected Model 3 sedans in the fourth quarter. The company added that it will be reducing the price of Model S, Model X and Model 3 vehicles in the US by $2,000 (£1,587).
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.
Reminder to US buyers that the $7500 tax credit cuts in half in 5 days! Order online at https://t.co/46TXqRrsdr to see if there is any inventory left in your region or visit Tesla stores.
— Elon Musk (@elonmusk) December 26, 2018
In its trading update today, the company said it delivered 63,150 Model 3s in the quarter, falling short of FactSet estimates of 64,900.
Overall, total production rose 8 per cent 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’s third-quarter results stated 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.
@Tesla has posted Q4 production & delivery numbers…
Production total: 86,555 cars
61,394 Model 3s produced
25,161 Model S and X produced
Deliveries total: 90,700 cars
63,150 Model 3s delivered
13,500 Model S delivered
14,050 Model X delivered from @Model3Owners tweet
— Tesla Owners Silicon Valley (@teslaownersSV) January 2, 2019