Tesla shares drop on disappointing quarterly performance

Tesla Sinks as Price Cuts Signal a Ceiling for Costlier ModelsMore

Tesla Sinks as Price Cuts Signal a Ceiling for Costlier ModelsMore

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

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

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. Previously, Tesla buyers had been eligible for a $7,500 federal tax credit on electric vehicle purchases, but as of January 1, the federal government has trimmed that credit to $3,750. On Jan. 1 the federal credit for Tesla buyers dropped from $7,500 to $3,750.

Chief Executive Elon Musk is under intense pressure to deliver on his promise of stabilizing production for the company's mass market sedans, seen crucial to it easing a cash crunch and achieving long-term profitability.

Unai Emery: I understand Arsenal fans booing my decision
Above all we know (Jean Michael) Seri is coming on and need a player close to him, not to let him play easily with the ball. Ozil has contributed four goals and two assists from 16 outings in the Premier League and Europa League this season.

The company delivered 8 percent more vehicles during the quarter, a new all-time high, but the numbers were less than expected.

The Palo Alto, California, company's 2018 sales included nearly 146,000 Model 3 lower-priced cars and another 99,000 of the more expensive Model S sedan and Model X SUV. The company said on Wednesday it had produced 61,394 Model 3s and delivered almost 1,000 vehicles per day in the fourth quarter.

Total deliveries rose from the third quarter to 90,700 cars, but missed forecasts, which had been influenced by analysts' expectations of a surge in buyers looking to cash in on the tax credit before year-end. Production also ramped up during the fourth quarter, enabling the company to complete 86,500 vehicles, up 8 percent from the previous quarter.

Tesla previously gave investors hope that its production rates would improve, saying that the number of labor hours to build the Model 3 fell by more than 30 percent from the second to the third quarter.

Recommended News

  • Purdue fan who inspired many with fight against cancer dies

    Purdue fan who inspired many with fight against cancer dies

    Tyler Trent, the Purdue fan with terminal cancer who inspired countless people while battling the disease, died on Tuesday. CNN's Kaitlan Collins tweeted: "Heartbreaking news".
    6 passengers confirmed sick on Frontier flight from Cleveland to Tampa

    6 passengers confirmed sick on Frontier flight from Cleveland to Tampa

    As seen in footage shared by WFLA, the rest of the passengers were held on the aircraft after landing in Tampa. Authorities haven't provided information on the symptoms passengers were experiencing or their conditions.
    WA police called after man shouted 'why don't you die?' at spider

    WA police called after man shouted 'why don't you die?' at spider

    According to Guardian Australia , an officer at Wanneroo police station confirmed the incident, but declined to comment. A terrified neighbour quickly dialled 000 after hearing wails from a man and a toddler screaming on her morning walk.
  • In u-turn, R Ashwin's named in India's 13 for Sydney Test

    In u-turn, R Ashwin's named in India's 13 for Sydney Test

    Two hours later, the tourists performed a u-turn and insisted Ashwin could yet return as he will be assessed on Thursday morning. Till now both the teams have met twice in the "Pink Test" with Australia winning one, and the second one ending in a draw.

    Fiesta Bowl: 3 takeaways from LSU's win over UCF

    RUNNING TIGERS: LSU may not be the most explosive offense in college football , but it does have two solid running options. The Knights were third nationally in total yards with 545.4 per game and fifth with 44.2 points per game.
    Google celebrates New Year's Eve with a doodle

    Google celebrates New Year's Eve with a doodle

    The Google Doodle is used to mark special occasions and this doodle has taken the event quite seriously. The entire world will be celebrating the New Year's Eve 2018 and will be welcoming the new year 2019.
  • IPhone XS Max catches fire in man's pocket

    IPhone XS Max catches fire in man's pocket

    Rival Huawei , which is the number two smartphone manufacturer in the world, could also adopt something similar, adds the report. Later that day, Hillard took his XS Max - along with its melted case and screen protector - to his local Apple Store.
    Comedian Alonzo Bodden Praises Tiffany Haddish's Handling of Bombed Set

    Comedian Alonzo Bodden Praises Tiffany Haddish's Handling of Bombed Set

    She vowed on stage to never allow herself to be in that type of situation again - and she wasn't talking about stand-up either. The 39-year-old actress retweeted an article which said her stand-up set "bombed" and admitted that the headline was accurate.
    Oklahoma Sooners' defense stunned Alabama Crimson Tide's fast start

    Oklahoma Sooners' defense stunned Alabama Crimson Tide's fast start

    Compared with that season, the first game of the semifinal doubleheader was up 5 percent and the second game was up 4 percent. Following redshirt freshman Joseph Bulovas' extra point the Tide held a 7-0 advantage with 11:54 left in the opening quarter.
  • Cyclone likely for Queensland's far north

    Cyclone likely for Queensland's far north

    The system is now over the Gulf of Carpentaria and moving west but is expected to turn back towards the Queensland coast tomorrow. Rowan Kahn, 28, was found was found dead on Monday in a flooded creek near where he went missing on Saturday.
    Several killed in Danish bridge train accident

    Several killed in Danish bridge train accident

    Several people were killed in a train accident at the Great Belt Bridge in Denmark, which links the country's central islands. The Danish broadcaster said that police were urging survivors to contact their loved ones to let them know they are safe.
    China's Xi Jinping threatens resort to 'force' to unify with Taiwan

    China's Xi Jinping threatens resort to 'force' to unify with Taiwan

    Chinese authorities would like to bring the island under their control and they have indicated they would use force, if needed. Mr Xi reiterated in his speech that China will not give up the use of military force to ensure Taiwan returns to the fold.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.