Tesla Inc (NASDAQ: TSLA) plunged 8
percent Wednesday despite announcing
new quarterly and annual records.
What To Know
In the closing quarter of 2018, the automaker produced 86,555 vehicles, marking an 8-percent climb from the previous term and
from its all-time high. That figure included a 15-percent pop in Model 3s (61,394) and stability in the Model S and X (25,161).
Total deliveries (90,700) expanded 8-percent off the record struck in the third quarter. Tesla achieved 13-percent growth in
Model 3s (63,150) — just short of analyst expectations (64,900).
Altogether, management delivered 245,240 vehicles in 2018, including 145,846 Model 3s.
“To put our growth into perspective, we delivered almost as many vehicles in 2018 as we did in all prior years combined,” the
company wrote in a press release.
The firm will begin deliveries in Europe and China in February and expand Model 3 sales to other pricing markets later in the
year. In order to maintain its sales momentum as the U.S. halves its EV tax credit, Tesla cut its domestic price by $2,000 on all
models.
Why It’s Important
Tesla had a rough year sentiment-wise. Although it ultimately closed the season with a 4-percent gain, shares had plummeted as
low as $250 on more than one occasion.
Investors doubted the firm’s potential as its CEO drew regulatory scrutiny, incurred an SEC fine, and behaved erratically with
Twitter Inc (NYSE: TWTR) rants and
live-streamed marijuana use. The company, itself, lost a number of high-profile leaders, delayed its milestones multiple times and
had difficulty achieving metrics.
The fourth-quarter and full-year achievement helps prove the team’s mettle.
What’s Next
Still, management expects to do better next year.
“Our Q4 Model 3 deliveries were limited to mid- and higher-priced variants, cash/loan transactions, and North American customers
only,” the company said. “More than three quarters of Model 3 orders in Q4 came from new customers, rather than reservation
holders. There remain significant opportunities to continue to grow Model 3 sales by expanding to international markets,
introducing lower-priced variants and offering leasing.”
Tesla's stock traded down 8.7 percent to $303.78 per share at time of publication.
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