investorschatroom.com

Finance

Tesla Shares Plummet as Company Misses Vehicle Delivery Estimates - Again

Share
Tesla left over with 3,000 Model 3s in the US inventories

On Jan. 1, the federal credit in the USA for Tesla buyers dropped from $7,500 to $3,750.

Starting today, the company will be reducing its price for Model S, Model X and Model 3 vehicles in the United States by $2,000, it said.

With Musk having generally reigned in his own behavior and the company's Model 3 production figures much closer to weekly production targets, the alarm bells that were ringing six months ago have quieted considerably. The federal government only offers the tax credit to companies that have sold fewer than 200,000 plug-in vehicles.

The Shanghai Gigafactory, based in eastern China, aims to manufacture Model 3 and Model Y cars, with annual capacity of 250,000 vehicles, according to a filing.

Compounding investor anxiety was the company's announcement that it would slash prices on all Tesla models by $2,000, with the price cut meant to offset a reduced federal tax credit that took effect on Tuesday.

The $2,000 cut in prices, however, weighed on the stock, pushing it down 9.4 percent to $301.69 in morning trade on a broadly weaker day for US markets.

Tear Gas Greets Illegal Immigrants Trying To Sneak Across Border From Tijuana
However, an Associated Press photographer said they saw rocks thrown only after USA agents fired the tear gas. Most of the migrants returned to Mexico through a hole under the fence and by climbing back over the fence.

Kate Middleton And Meghan Markle Share Sweet Moment At Royals’ Christmas Service
The announcement of the move has sparked claims of a feud between Meghan and Kate , with the pair reportedly not getting on well. They are expected to join the Duke and Duchess of Sussex for the annual church service at St Mary Magdalene on Christmas Day.

Wolves' Conor Coady on Liverpool loss: We should have done better
The world's most expensive defender has been key to a Liverpool backline that has kept 11 league clean sheets so far this season. Liverpool have dropped just six points so far this season, but Klopp says his side can not afford to start getting carried away.

In its previous results statement, the company promised to focus on increasing its production rate.

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.

Tesla will be announcing its Q4 financials later this month.

'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.

Tesla's cars are some of the most popular electric vehicles out there, but there's no denying that they are also pretty expensive.

Deliveries of Model 3s in the period were 63,150, a 15pc rise and in line with Tesla's guidance but slightly below the 63,700 analysts had been expecting. But some bearish investors are likely interpreting it as a move to stimulate demand, said Wedbush analyst Dan Ives. Tesla also claimed to have boosted their production levels in the fourth quarter significantly, from 80,142 in the third quarter to 86,500 in the fourth. Analysts polled by data provider FactSet expected 92,000.

Share