Tesla shares dropped after missing deadline
Tesla shares plummet after delivery crisis failure
April 3, 2019, Tesla shares have dropped roughly 8%. The futuristic electronic car brand that has been leading the industry into the future of safer, environmentally friendly transportation has been raising some flags about meeting demands for their products.
I was in shock to read that there was in fact a drop of 31% in the model 3 deliveries to China and Europe. According to Tesla, roughly 63,000 were delivered out of the 73,000 that was expected. The model Y, Tesla's newest toy, has not received the type of warm welcoming the firm anticipated neither.
Another thing to notice is the fall in U.S. federal tax credit which almost halved from $7,500 to $3,750 with experts claiming it will be $0 by 2020.
2019 has not been Tesla's year with the stock dropping almost 20% to $266. Tesla believe this is being caused by the pricing changes with its cheapest model being at $35,000 and the delivery situation.
Elon Musk is at least sounding hopeful, boldly claiming that Tesla are set to deliver up to 400,000 vehicles within the next 3 quarters. According to Musk, that'll mean 10,000 per week for the remainder of 2019.
That's a big ask for Tesla, but it is possible, I will be looking forward to watching how 2019 unfolds for the electronic vehicle manufacturers.
A 20% decrease in stock is crazy! Did Elon Musk say how he would increase its delivery rather than just saying it? This is just so shocking because not too long ago they were a dominant force in the automobile industry and now it seems they cant uphold promises and are quickly losing consumer trust.
ReplyDeleteA very interesting article! As a follower of Tesla and its stock, I was very surprised to see the recent decline in Tesla's shares. As dominant as Tesla is, I see them bouncing back soon, however, Elon Musk will need to come out and explain how he will increase Tesla's delivery, in order for that to occur.
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