Tesla Shares Plummet as Company Misses Vehicle Delivery Estimates - Again

Tesla Sinks as Price Cuts Signal a Ceiling for Costlier ModelsMore

Tesla Sinks as Price Cuts Signal a Ceiling for Costlier ModelsMore

The automaker's third-quarter pre-tax profit was around $3,200 per vehicle delivered, but for the first nine months of 2018 the company suffered a loss per vehicle delivered of $8,019, according to Reuters calculations.

Tesla has been urging buyers to make use of the federal tax credit, with chief executive officer Elon Musk reminding them on Twitter on Saturday that the benefit would drop to half beginning 2019.

The Model 3 now starts at $45,200 with destination for the Mid Range version; it is the cheapest new Tesla currently for sale (the long-promised $35,000 Standard Range version is now said to be four to six months away). Come 2020, the tax credit disappears entirely (although no one will care since two-thirds of the world's wild animals are on track to disappear by 2020, too).

By the end of the quarter, Tesla had 1,010 Model 3 and 1,897 Model S and X that was in transit to customers, which are expected to be delivered in early 2019.

Tesla will cut the price of its Model 3, Model X and Model S vehicles.

Musk said back in October that Tesla turning its attention to filling Model 3 orders in Europe and China early this year would help pick up any slack in demand once US buyers lose the full $7,500 federal tax credit.

The $44,000 Model 3 is seen is the most important auto for Tesla, with founder Elon Musk touting it as a more affordable vehicle.




The company's deliveries for the year matched Wall Street estimates, but its figures for the fourth quarter fell short.

It built 86,555 vehicles in the fourth quarter, including 61,394 of its flagship Model 3 sedans.

"The price cut is what's driving the stock lower, as it openly acknowledges the sunset of subsidy dollars is a material headwind", said Craig Irwin, an analyst with Roth Capital Partners.

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.

Deliveries to customers in Europe and China will begin in February, the company said.

Moving beyond the success of Q4, we are taking steps to partially absorb the reduction of the federal EV tax credit.

There remain significant opportunities to continue to grow Model 3 sales by expanding to global markets, introducing lower-priced variants and offering leasing. Tesla has been through hell in 2018, thanks in no small part to the antics of its CEO.

Recommended News

  • NASA announcement: New Horizons set for historic flyby TOMORROW

    NASA announcement: New Horizons set for historic flyby TOMORROW

    Instead, hundreds of team members and their guests gathered nearby on campus for back-to-back countdowns. "So stay tuned. NASA's New Horizons probe has flown past Ultima Thule - a ball of dust and ice that's 6.5 billion kilometres from Earth.
    Four more National Football League  coaches are out, including Adam Gase and Marvin Lewis

    Four more National Football League coaches are out, including Adam Gase and Marvin Lewis

    But the team never won a playoff game under Lewis, and regressed the past three seasons, failing to qualify for the postseason. While there has been no indication about the next head coach in Cincinnati, the process is expected to take weeks.
    Rapid City Kmart to close

    Rapid City Kmart to close

    The company also has a lot riding on its holiday season sales, which Sears indicated are not going as well as it had hoped. At the time of its bankruptcy filing, Sears said it had 687 stores and 68,000 employees, 32,000 of whom are full-time.
  • Burned to a Krisp - US police mourn lost doughnut truck

    Police in Lexington, Kentucky are in mourning, after a doughnut truck caught fire as it was passing through the town. Police are still investigating the cause of the fire.
    Floyd Mayweather's New Year's Eve demolition of Tenshin Nasukawa

    Floyd Mayweather's New Year's Eve demolition of Tenshin Nasukawa

    It was an unexpected turn of events, and the rule set was even more freakish . "We had fun", Mayweather said after the fight. After the third knockdown, Nasukawa's team threw in the towel, giving Mayweather the easy victory. "I'm still undefeated.
    Chief of staff Kelly: Trump backed away from wall months ago

    Chief of staff Kelly: Trump backed away from wall months ago

    When she previously was House speaker, she would routinely demand exclusive jet travel from Washington to California for breaks. At least 56% of Americans oppose Trump's border wall idea, according to a Harvard CAPS/Harris poll released on Friday.
  • Trump ready to make a deal to end shutdown?

    Trump ready to make a deal to end shutdown?

    He also said the compromise should include changes in federal law to discourage people from trying to enter the USA illegally. The shutdown is forcing hundreds of thousands of federal workers and contractors to stay home or work without pay.
    Serena Williams & Roger Federer Spend New Year's Eve on the Red Carpet!

    Serena Williams & Roger Federer Spend New Year's Eve on the Red Carpet!

    Switzerland's Federer and Bencic will team up to play Williams and Tiafoe of the US in the deciding mixed doubles. Williams and Federer both served well against each other, but Federer's sublime touch at the net proved decisive.
    How to Watch New Year’s Eve 2018 TV Coverage Online

    How to Watch New Year’s Eve 2018 TV Coverage Online

    The Times Square Alliance, which runs the ball drop, says the estimates come from the New York City Police Department. For those who won't be in Times Square for the New Year, they can watch the live stream on CNN's homepage here.
  • Albertan teacher detained in China released, is back in Canada

    Albertan teacher detained in China released, is back in Canada

    Prime Minister Justin Trudeau has confirmed that McIver's case does not appear to be linked to that of the other two detainees. Since her arrest, multiple Canadian citizens have been detained in China, even as both governments refused to link the cases.
    Police killing suspect was fleeing to Mexico, sheriff says

    Police killing suspect was fleeing to Mexico, sheriff says

    Singh was the first officer with the Newman Police Department to die in the line of duty, Chief Randy Richardson said . Newman Police Officer Ronil Singh called in the traffic stop yesterday after noticing a vehicle had no license plate.
    Patrick McCaw signs two-year offer sheet with Cavaliers

    Patrick McCaw signs two-year offer sheet with Cavaliers

    McCaw played in 128 regular games (30 starts) over two seasons with Golden State and averaged 4.0 points in 15.9 minutes per game. McCaw will sign a two-year, $6 million offer sheet with the Cavaliers, according to ESPN's Adrian Wojnarowski .

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.