Tesla tumbles after missing on vehicle deliveries and cutting prices
- Tesla slightly missed on its Model 3 deliveries in the fourth quarter.
- Annual deliveries for Model S and Model X vehicles also missed the mark.
- The electric-car maker announced a $2,000 price reduction for all the three vehicles in the US starting Wednesday.
- Tesla was trading lower by more than 7%.
- Watch Tesla trade live.
Tesla tanked as much as 7.57%, to $307.60 a share, early Monday after the company missed on vehicle deliveries and cut prices for three of its models.
The electric-car maker said Wednesday that it delivered 63,150 Model 3 sedans in the fourth quarter, missing the 63,698 that was expected by Wall Street, according to Bloomberg data.
Meanwhile, the company delivered 13,500 Model S and 14,050 Model X vehicles in the fourth quarter, making its quarterly deliveries grow to a record high of 90,700 vehicles. But the 99,394 Model S and Model X deliveries in 2018 was just shy of its 100,000 annual target.
Tesla also announced a $2,000 price reduction for all the three vehicles in the US starting Wednesday. The federal electric-vehicle tax credit it has benefitted from was dropped from $7,500 to $3,750 as of January 1.
Last month, Tesla slashed the price of certain Model 3 cars in China by up to 7.6%, the third time in the last two months that it has adjusted its prices in the world's biggest auto market.
"There remain significant opportunities to continue to grow Model 3 sales by expanding to international markets, introducing lower-priced variants and offering leasing," Tesla said in a press release.
"International deliveries in Europe and China will start in February 2019. Expansion of Model 3 sales to other markets, including with a right-hand drive variant, will occur later in 2019."
Tesla was up almost 7% last year.
