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Tesla shares drop on disappointing quarterly performance | |
(35 minutes later) | |
Tesla shares have fallen after the electric carmaker revealed that it missed expectations for deliveries and will be cutting its vehicle prices by $2,000 in the US. | Tesla shares have fallen after the electric carmaker revealed that it missed expectations for deliveries and will be cutting its vehicle prices by $2,000 in the US. |
The price cut, which will apply to Model S, Model X and Model 3 cars, is in response to a reduction in green tax credits. | The price cut, which will apply to Model S, Model X and Model 3 cars, is in response to a reduction in green tax credits. |
Tesla said it delivered 90,700 vehicles in the three months to December. | Tesla said it delivered 90,700 vehicles in the three months to December. |
Its shares fell by about 8% at the start of US trading. | Its shares fell by about 8% at the start of US trading. |
Ahead of the price cut announcement, chief executive Elon Musk urged Tesla customers to make use of federal tax credits. | Ahead of the price cut announcement, chief executive Elon Musk urged Tesla customers to make use of federal tax credits. |
Worth around £6,000 ($7,500), the credits are set to reduce by half after the first 200,000 Tesla vehicle deliveries in the US. | Worth around £6,000 ($7,500), the credits are set to reduce by half after the first 200,000 Tesla vehicle deliveries in the US. |
The company also said it delivered 63,150 Model 3s in the quarter, falling short of FactSet estimates of 64,900. | |
Nicholas Hyett, Equity Analyst at Hargreaves Lansdown, said that investors had been expecting "Herculean achievements". | |
"For most automotive groups these would be very impressive numbers - almost tripling the number of vehicles you deliver in just one year is no mean feat," he added. | |
In its previous results statement, Tesla promised to focus on increasing its production rate, which is crucial to the company's long-term profitability. |
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