Tesla stock falls after missing delivery goals
The carmaker stumbles after producing fewer cars than expected.
Tesla stock is down after missing its fourth-quarter (Q4) goals for delivering cars. The company’s stock has dropped as much as 9% after the disappointing news.
Tesla’s falling numbers
The carmaker delivered 90,700 of its vehicles during Q4, an 8% surge for Tesla. However, the number was 2000 less than investors expected. The company produced 63,150 Model 3’s, which was also a lower amount than the 63,700 analysts wanted.
Wall Street is closely watching that specific model because chief executive officer (CEO), Elon Musk, pledged that the corporation would increase manufacturing of the automobile from 100,000 to 500,000 a year.
Tesla also revealed that it’s cutting prices on its cars by $2000 to offset the reduction in the $7500 US tax credit for purchasing the electric vehicles. The company vowed that the changes will keep the automobiles at an affordable price.
‘Combined with the reduced costs of maintenance and of charging a Tesla versus paying for gas at the pump -- which can result in up to $100 per month or more in savings -- this means our vehicles are even more affordable than similarly priced gasoline vehicles,’ said the auto company in a statement.
Optimism for Tesla in 2019
Tesla promised to ramp up production in the new year to meet its delivery goals in the future.Despite the disappointing numbers, the carmaker touted its progress from 2018.
‘Tesla's achievements in 2018 likely represent the biggest single-year growth in the history of the automotive industry,’ noted the company.
Financial experts like investment researcher, Garrett Nelson, said that Tesla will continue to grow over the course of 2019.
‘Tesla shares tend to a have a lot more noise and volatility than most, but we think investors who are willing to take a longer-term view of the story will be rewarded handsomely and continue to believe Tesla is on track to post one of the market's most robust year-over-year earnings increases in 2019,’ said Nelson.
This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
Be ready to act on ECB opportunities
Learn how the ECB’s monetary policy announcements affect interest rates and price stability ahead of its next meeting in 22 April 2021.
- How might the next meeting affect the markets?
- What are the key rate decisions to watch?
- Why is the Governing Council announcement important for traders?
Live prices on most popular markets