Lower Model 3 prices can’t prevent Tesla’s slide by 3% after deliveries fail to impress; Tesla opens orders to Europe and China

Tesla Inc. (TSLA) values plunged in trading after news it was cutting prices on the Model 3 to make up for the reduced federal tax credits in the U.S. On the other hand, Tesla confirmed receiving nearly 14,000 Model 3 orders for Europe — which has become a focus for the company. Orders are also open to China.

Tesla declined in share values against slightly dissapointing Model 3 deliveries due to the loss of federal tax credits.

 

With 56,065 Model 3s delivered, less than the projected 63,150, Tesla was at 300.51, down 3.19% as of January 3, 2019. Aside from delivery issues, U.S. demand is down after the $7500 federal tax credit was eliminated.

The $2,000 price cut on all three models — meant to help compensate for the reduction in federal tax credits for EVs — seems to have reinforced negative sentiment, or at the least made little impact on confidence. Investor’s still don’t know if Tesla will be profitable, and may not know for some weeks, although it did build 61,394 Model 3s in the last three months.

 

The unique interior of the model 3.

 

The main focus of Tesla will be filling Model 3 orders, especially in Europe and China — in part to offset the loss of revenue in the U.S.

On the Model S and Model X, 2018 also fell slightly short of the goal of 100,000 deliveries, although it was closer with 99,394 confirmed deliveries.

 

Did you miss this?

Other Popular Stories

  • Manufacturing down in February in both Canada and US
  • NASA Discovers Eighth Planet Circling Distant Star
  • Modest business growth forecast as manufacturing slows in June
  • Housing starts, employment, up sharply in May
  • Five defence industry technologies — right out of science fiction — that are real today
  • English-French partners show all-electric aircraft at Paris Air Show
  • LNG Canada moves ahead with BC project as China and Russia sign huge gas deal
  • Cars and aerospace boosted Canada's manufacturing sales in November
  • Strong manufacturing helped grow economy in January
  • Canadian work in composite materials honoured with innovation awards
  • Regional LNG plant approved in Quebec
  • Pilot project will use algae to recycle industrial CO2 emissions
  • Researchers claim improved performance from lithium-air battery
  • First drone crash with a commercial aircraft in Canada triggers safety review and possible new rules
  • Nuclear emergency response centre for Ontario as countries deal with aging reactors
  • Electricity-conducting cement could make runways, roads ice proof
  • Highly Accurate Counting Technique from National Institute of Standards and Technology
  • Canada-France space agencies test stratosphere balloon in Ontario
  • Southwest Requested More Time for Inspections, Second Engine Explosion Results in Tragedy
  • Windsor's good fortune with Chrysler hiring tempered by TPP concerns
Scroll to Top