Economy

Tesla triples deliveries of electric cars but share price tumbles

Tesla triples deliveries of electric cars but share price tumbles

His efforts may have contributed to Tesla's 90,700 sales tally for the fourth quarter of 2018, which was the company's best result yet, but fell below Wall Street estimates.

Hargreaves Lansdown analyst Nicholas Hyett estimated in a client note that if Tesla continues to deliver cars at the current rate, the price cut will mean $700 million in lost revenue in 2019. Analysts pegged Tesla to sell more than 96,000 vehicles as the fourth quarter ends.

CNBC reports that Elon Musk's Tesla has yet again run into another stumbling block, once again failing to meet its expected fourth quarter delivery estimates. Despite the increase, shareholders felt a certain unsteadiness as stock prices declined and investors expressed their disappointment over failed expectations to close out the year.

Tesla Banks on Model 3 Production ImprovementsLos Angeles, USA - November 30, 2017: Tesla Model 3 on display during LA Auto Show at the Los Angeles Convention Center.

The electric-car maker's shares fell by 9.3 percent, to 301.87, in early trading.

Over the course of 2018, Tesla delivered a total of 245,240 vehicles, comprised of 145,846 Model 3, as well as 99,394 Model S and Model X. The company notes in its report that its deliveries in 2018 are nearly equal to its total deliveries in all prior years combined.

More news: NASA Tracking Flyby Of Most Distant Space Expedition In Human History

"There remain significant opportunities to continue to grow Model 3 sales by expanding to worldwide markets, introducing lower-priced variants and offering leasing", Tesla said in a press release.

Even so, analysts had expected more of the electric carmaker, anticipating that it would complete 92,700 deliveries across its Model 3, Model S sedan, and Model X SUV. That suggests many consumers are still waiting to buy versions of the vehicle at the long-promised $35,000 sticker price.

As of writing, Tesla stock is trading down 7.45% at $308.00 per share.

The company's deliveries for the full year matched Wall Street estimates, but its figures for the fourth quarter didn't reach expectations. I don't expect that Tesla operates in the black in 2019, ' Frank Schwope, an analyst with NORD/LB said. 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.

The company says it produced almost 87,000 vehicles in the fourth quarter, also eight per cent above its previous quarterly record set in the third quarter.