Tesla disappointed investors Wednesday, delivering 90,700 vehicles during the fourth quarter, which fell short of Wall Street forecasts despite its efforts to ramp up production.
The electric carmaker’s shares fell by almost 7 percent in premarket trading.
The company, which released its production and delivery results for the fourth quarter, also announced that it was cutting prices on all of its models by $2,000 to help offset a reduction in federal tax credits for drivers who buy electric vehicles. The fourth quarter marked an end to a $7,500 federal tax credit that Tesla was able to use to lure buyers in the past. That was cut in half to $3,750 starting Jan. 1.
The company delivered 8 percent more vehicles during the quarter, a new all-time high, but the numbers were less than expected. The company said it delivered 63,150 Model 3s, 13,500 Model S sedans, and 14,050 Model X SUVs. Wall Street analysts had forecast 64,900 Model 3 deliveries, 14,200 for the Model S and 13,600 for the Model X, according to average estimates of nine analysts compiled by FactSet.
Tesla boosted production during the quarter, churning out 86,555 vehicles, up 8 percent from 80,142 during the third quarter, the company said.
Tesla previously gave investors hope that its production rates would improve, saying that the number of labor hours to build the Model 3 fell by more than 30 percent from the second to the third quarter. The company also told investors in late October that it took less time to build than the Model S sedan and Model X sport utility vehicle — another first for the company.
“We will focus even further on cost improvements while continuing to increase our production rate” during the fourth quarter, the company said at the time.
Tesla boosted production during the quarter, churning out 86,500 vehicles, up from 80,142 during the third quarter, the company said.
CEO Elon Musk announced Oct. 23 that the company planned to limit certain options on its higher-end Model S sedans and Model X SUVs to streamline production. The company also announced plans during the fourth quarter to start selling a $45,000 version of the Model 3, before raising the price $46,000. It has yet to produce the base Model 3, which it has promised for a price of $35,000 before incentives.
