By CRM staff
Toronto, Ontario — January 2, 2019 — Tesla investors were left shaking their heads this morning after the electric car company’s stock fell as much as 9.34 percent, to $301.49 a share as a result of missed vehicle deliveries and price cuts on three of its vehicles.
The automaker said Wednesday that it delivered 63,150 Model 3 sedans in the fourth quarter, missing the target of 63,698 that was forecasted by Wall Street, according to Bloomberg data.
Despite delivering a record amount of Model S and Model X vehicles in 2018, 90,700 to be exact, the company fell short of its annual target of 100,000, as reported by Market Insider.
Tesla announced that it will be reducing the price of the Model S, Model X and Model 3 vehicles by $2,000 starting today in the U.S. The federal electric-vehicle tax that the company has benefited from dropped from $7,500 to $3,750 effective January 1.
In December Tesla dropped the prices of Model 3 vehicles in China by 7.6 percent, representing the third time in two months that the company had decreased prices in the world’s largest auto market.
“There remains significant opportunities to continue to grow Model 3 sales by expanding to international markets, introducing lower-priced variants and offering leasing,” Tesla said in a press release.
“International deliveries in Europe and China will start in February 2019. Expansion of Model 3 sales to other markets, including with a right-hand drive variant, will occur later in 2019.”
While investers may soon find this drop erased, it may take a while for the company’s stock to return to its year-end prices. In 2017, Tesla’s stock price rose approximately seven percent over the course of the year.