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Stock Market

Tesla Shares Tumble After Release of Q4 Deliveries, Announces $2,000 Price Cut

Investing.com - Shares in Tesla (NASDAQ:TSLA) tumbled in premarket trade on Wednesday after the company reported fourth-quarter production and delivery

Investing.com - Shares in Tesla (NASDAQ:TSLA) tumbled in premarket trade on Wednesday after the company reported fourth-quarter production and delivery numbers, while also announcing a $2,000 reduction to prices in the U.S.

Tesla announced that vehicle production in the fourth quarter increased to 86,555, 8% higher than the previous record in the prior quarter.

Similarly, deliveries during the final three months of 2018 also rose 8% from its prior record high to 90,700 vehicles. The number of deliveries came in below Wall Street estimates, according to CNBC.

“There remain significant opportunities to continue to grow Model 3 sales by expanding to international markets, introducing lower-priced variants and offering leasing. International deliveries in Europe and China will start in February 2019,” Tesla noted in the press release.

Tesla further announced that prices in the U.S. would be reduced $2,000 effective immediately in an effort to absorb the reduction of the federal tax credit for the purchase of electric vehicles. This was cut in half to $3,750 as of Jan. 1.

At 9:02 AM ET (14:02 GMT), Tesla shares plunged 7% to $309.50 in premarket trade.