Tesla disappointed investors Wednesday, delivering 90,700 vehicles during the fourth quarter, which fell short of Wall Street forecasts despite its efforts to ramp up production.
The electric carmaker’s shares fell by about 7 percent in premarket trading.
The company, which released its production and delivery results for the fourth quarter, also announced that it was cutting prices on all of its models by $2,000 to help offset a reduction in federal tax credits for drivers who buy electric vehicles. The fourth quarter marked an end to a $7,500 federal tax credit that Tesla was able to use to lure buyers in the past. That was cut in half to $3,750 starting Jan. 1.
The company delivered 8 percent more vehicles during the quarter, a new all-time high, but the numbers were less than expected. The company said it delivered 63,150 Model 3s, 13,500 Model S sedans, and 14,050 Model X SUVs. Wall Street analysts had forecast 64,900 Model 3 deliveries, 14,200 for the Model S and 13,600 for the Model X, according to average estimates of nine analysts compiled by FactSet.
Tesla boosted production during the quarter, churning out 86,555 vehicles, up 8 percent from 80,142 during the third quarter, the company said.