Tesla Model 3 inferior Wall Street Q4 revenue delivery: Tesla delivered a little less than its Model 3 in the last quarter of 2018 than Wall Street expected, the company announced Wednesday (January 2nd).
There were 63,150 deliveries from Model 3 in the fourth quarter compared to 63,698 deliveries. Tesla's total shipments for all models for the quarter increased to 90,700, easily exceeding the previous record set in the third quarter.
The company also announced a price reduction of $ 2,000 for all its vehicles to offset a previously available tax credit for Tesla buyers, which increased from $ 7,500 to $ 3,750 on January 1.
Tesla Model 3 inferior Wall Street Q4 revenue delivery
Tesla shares fell sharply by around 8% early in the session following the announcement. Tesla's fourth quarter figures are "probably as good as possible," Nomura Instinet analyst Romit Shah said in a note to customers. "We consider this weakness in the short term."
The company added that most sales of the Model 3 were limited to the mid-priced and higher-priced versions of the sedan, which still has not been sold at the promised base price of $ 35,000. She also said that most sales were for new customers, as opposed to booking customers who might expect cheaper options.
"There are still significant opportunities to continue increasing Model 3 sales in international markets, introducing cheaper versions and leasing," Tesla said in a press release.
"International shipments to Europe and China will begin in February 2019. The expansion of Model 3 sales into other markets, including a variant with right-hand drive, will take place later in 2019."
The construction of Gigafactory 2 in China is expected to help these Chinese deliveries, where General Manager Elon Musk has announced that he will be visiting for the first time soon. Last week, Tesla joined two new board members - including Oracle co-founder Larry Ellison - as part of its deal with the SEC, the stock market regulator, after Musk's bid to take the builder out of its listing.
Tesla is expected to release its financial results for the fourth quarter later in the month.
RELATED: Tesla reaches record high on Wall Street after announcing shipments up 69% in Q1
Tesla reached its all-time high at the opening of Wall Street this Monday, April 3, after announcing record deliveries in the first quarter (Q1) - up 69% over the same period of 2016.
The title climbed to 293.35 dollars around 16:30, French time, (+ 5.41%), exceeding its previous record that went back to 2014.
In February 2014, the stock had gained 10% to $ 213 on the New York Stock Exchange, according to Boursier.com.
The electric car manufacturer, founded by Elon Musk, announced on Sunday that it broke its record of deliveries in Q1, with 25,000 vehicles in total.
In Q4 2016, car deliveries were down 9.4% due to production delays related to the transition to new autopilot software.