Tesla’s Numbers Fall Short Sending Shares Plummeting

Wall Street was less than thrilled to learn about Tesla’s delivery numbers for the fourth quarter.

Shares fell over 6% after the electric vehicle maker reported that it delivered 90,700 vehicles during the quarter, which was less than what was expected. Shares fell as much as 10.2% in the morning on Wednesday after traders learned the news.

Despite missing expectations, the company did see production jump during the quarter, making 86,555 vehicles, a growth of 8% from 80,142 during the third quarter. This was a new all-time high for the company.

For the exact numbers for each model, Tesla delivered 63,150 Model 3s, 13,500 Model S sedans and 14,050 Model X SUVs. Wall Street analysts were expecting 92,000 total deliveries. 64,900 for the Model 3, 14,200 for the Model S and 13,600 for the Model X. This is according to average estimates analysts compiled by FactSet.

“Tesla shares tend to a have a lot more noise and volatility than most, but we think investors who are willing to take a longer-term view of the story will be rewarded handsomely and continue to believe Tesla is on track to post one of the market’s most robust year-over-year earnings increases in 2019,” remarked CFRA analyst Garrett Nelson.

Tesla also revealed that it is slashing prices on all of its models by $2,000.
Wedbush Securities analyst Dan Ives told CNBC they were consistent with his prediction and that the cut in prices was likely weighing on the stock.

“It was a move that was within the realm of possibility, but it caught investors off guard,” he explained.

Disclaimer: We have no position in Tesla Inc. (NASDAQ: TSLA) and have not been compensated for this article.