From ExtremeTech: Tesla announced a $2,000 reduction in the price of all vehicles to partially offset expiring tax credits, but the move wasn’t enough to stop Wall Street from punishing the company today. The company’s stock price fell almost 10 percent upon opening (it has since rebounded slightly).
First, the price cuts. Up until now, Tesla buyers have qualified for a $7,500 rebate, good until Tesla sold its 200,000th vehicle. Once it did so, the company had two more quarters until its full tax credit was cut in half. Tesla buyers will now receive $3,750 in tax rebates instead of $7,500, so the company trimmed prices by $2,000 to partially offset the lost credit.
But while Tesla boosted the total number of vehicles it manufactured in the quarter by ~8 percent, it came in below Wall Street expectations and does not appear to have quite maintained its target 5,000 vehicles/week production target for the Model 3. Actual Model 3 production averaged ~4,700 vehicles per week. That’s vastly better than where the company was a year ago, but significantly below the 6,000/week target Musk previously said Tesla would achieve by August 2018. Overall, Tesla produced 145,846 Model 3s in 2018, along with 99,394 Model S and Model X vehicles. Model S and X production fell slightly year-on-year, but this was in-line with expectations and likely the result of the company’s intense focus on pushing Model 3 development.
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