Elon Musk, chairman and chief executive of Tesla, unveils the company's new Roadster sports car in Hawthorne, Calif., in 2017. File Photo courtesy of Tesla | License Photo
Jan. 2 (UPI) -- Tesla Inc. tumbled in early trading after failing to hit delivery marks for its Model 3 sedans in the fourth quarter and slashing prices to make up for federal tax credit decreases in the United States.
While fourth quarter Model 3 deliveries of 63,150 topped the 56,065 Tesla made in the third quarter, it fell just short of the 63,700 analysts expected, Bloomberg reported.
Tesla stocks fell nearly 9 percent in early trading Wednesday on the news that it missed analysts' fourth quarter delivery estimates, selling at $302.88.
Tesla said in an announcement Wednesday that it produced 90,700 vehicles overall, an 8 percent increase over its all-time high in the third quarter. The company said it delivered 13,500 Model S vehicles and 14,050 of its Model X.
Tesla also announced a $2,000 price cut on all of the Model 3, Model S and Model X to help U.S. purchasers, who will get only a $3,750 federal tax credit over the next six months, down from the previous $7,500.
"Combined with the reduced costs of maintenance and of charging a Tesla versus paying for gas at the pump -- which can result in up to $100 per month or more in savings -- this means our vehicles are even more affordable than similarly priced gasoline vehicles," Tesla said.
Wedbush Securities analyst Dan Ives told CNBC the delivery numbers were expected, but the price cuts surprised Wall Street.
"It was a move that was within the realm of possibility, but it caught investors off-guard," Ives said.