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| Tesla shares sink as car deliveries drop | Tesla shares sink as car deliveries drop |
| (32 minutes later) | |
| Tesla's share price tumbled nearly 9% after the electric carmaker warned on profits following a 31% drop in vehicle deliveries during the first quarter. | Tesla's share price tumbled nearly 9% after the electric carmaker warned on profits following a 31% drop in vehicle deliveries during the first quarter. |
| The firm blamed problems with shipments to Europe and China, where it began selling its Model 3 car for the first time. | The firm blamed problems with shipments to Europe and China, where it began selling its Model 3 car for the first time. |
| Total deliveries hit 63,000 in the three months to March, below analysts' forecasts which had already been cut. | Total deliveries hit 63,000 in the three months to March, below analysts' forecasts which had already been cut. |
| Tesla now expects quarterly profits to be "negatively impacted". | Tesla now expects quarterly profits to be "negatively impacted". |
| The company encountered problems shipping the Model 3 to China in March after customs authorities suspended clearance because of misprinted labels on certain cars. | The company encountered problems shipping the Model 3 to China in March after customs authorities suspended clearance because of misprinted labels on certain cars. |
| Tesla also saw shipments disrupted in Europe following strike action at the port of Zeebrugge, where its vehicles are delivered before being distributed to a number of countries in the EU. | |
| Tesla said that it had only delivered half the entire quarter's vehicles by 21 March, and that 10,600 cars were still "in transit" at the end of the quarter. | Tesla said that it had only delivered half the entire quarter's vehicles by 21 March, and that 10,600 cars were still "in transit" at the end of the quarter. |
| The carmaker's shares dropped nearly 9% in early trading in New York to $265.9 each. | The carmaker's shares dropped nearly 9% in early trading in New York to $265.9 each. |
| 'Very disappointing' | |
| Analysts had expected Tesla to deliver 82,000 vehicles between January and March, but this was then reduced to 71,350. | Analysts had expected Tesla to deliver 82,000 vehicles between January and March, but this was then reduced to 71,350. |
| In the fourth quarter, Tesla delivered 90,700 cars. | In the fourth quarter, Tesla delivered 90,700 cars. |
| The Model 3 is key to Tesla's future. It is the company's lowest-priced car and Tesla is building a manufacturing site in China which will allow it to cut shipment costs. | |
| However, analysts were also spooked by a sharp fall in deliveries of Tesla's Model S and Model X vehicles. | |
| In the fourth quarter, Tesla delivered 13,500 Model S models and 14,050 Model Xs. | |
| But in the first quarter, that dropped to a combined 12,100 cars, which analysts at banking group RBC said was "very disappointing". |