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.

 

Other Popular Stories

  • Pratt & Whitney Canada announces helicopter engine contracts
  • Canada keeping up pressure on US for Keystone XL approval
  • Miners struggling with higher costs, lower prices
  • SPPCA's new landing gear facility opening in Mississauga
  • Economy managed slight growth in Q4, but shrank in December
  • Canadian business, except energy, had profitable Q4: Statistics Canada
  • Manufacturing the sole industry showing job losses in February
  • Japex to buy into west coast LNG development
  • GM investing $250 million at Ingersoll plant
  • DART Aerospace re-branding itself to reach wider markets
  • RV industry has growing role in Canada's economy: study
  • BC refinery close to financing deal
  • Russian leasing company orders 42 CSeries jets from Bombardier
  • Volkswagen to produce super-efficient hybrid
  • Canadian oil production up; producers turning to railways for shipment
  • FTG Aerospace to supply avionics to Rockwell Collins
  • Bombardier holds update on CSeries aircraft
  • Clean energy expected to surge as pv costs drop
  • Bombardier nearly ready to flight test CSeries
  • Skilled labour shortage in world oil industry: report
Scroll to Top