To soften the blow of their cars' high price tags, Tesla has always offered federal EV tax credits to U.S. residents; usually amounting to around $7500 in total savings. The company said it delivered 13,500 Model S vehicles and 14,050 of its Model X.
Tesla's Q4 production numbers are comprised of 61,394 Model 3 vehicles, in line with the company's guidance and 15% more than its already notable figures in the third quarter.
Shares of electric auto and solar panel maker Tesla Inc. tumbled Wednesday, Jan. 2, 2019, morning after the company cut vehicle prices by $2,000 and announced fourth-quarter sales figures that fell short of Wall Street estimates. Customers can apply to receive the $3,750 federal tax credit for new deliveries starting on January 1, 2019, and may also be eligible for several state and local electric vehicle and utility incentives, which range up to $4,000.
Musk previously stated that Model 3 reservations had surged to over half a million, but on a recent conference call he went back on this statement saying: "To be more accurate, there have been 518,000 gross reservations for Model 3 and then we have 455,000 net reservations".
Apart from reporting record deliveries and production, Tesla also noted that it is rolling out a price adjustment of $2,000 for its vehicle lineup to absorb the reduction of the federal tax credit being granted to electric auto buyers.
Tesla shares tumbled more than 8 per cent at the opening bell, to $304.69.
Chief Executive Elon Musk is under intense pressure to deliver on his promise of stabilizing production for the company's mass market sedans, seen crucial to it easing a cash crunch and achieving long-term profitability. The company said it would begin delivering Model 3s to Europe and China in February.
Tesla said it produced and delivered a record number of vehicles. But some bearish investors are likely interpreting it as a move to stimulate demand, said Wedbush analyst Dan Ives. The company's production grew to 86,555 vehicles, up 8 per cent from the high set in the past quarter. The carmaker also reported fourth-quarter deliveries that fell just short of analysts' estimates. Analysts polled by data provider FactSet expected 92,000.