Tesla’s automobile delivery report missed its forecast for the fourth quarter of 2016, leading to a dip on its shares during the Wednesday trading.
On the news that Tesla missed their delivery forecast for the fourth quarter, shares were down 2.3%, or $4.96 at $212.03.
Tesla initially gave forecast on its delivery for their Model X and S to reach to at least 80,000 to 90,000 vehicles by the end of the year. However, Tesla has reported to have delivered only 76,230 vehicles at the end of the year.
The company’s miss on their delivery forecast marks the third year Tesla has missed on their predictions.
For the fourth quarter of 2016, Tesla has manufactured a total of 24,883 vehicles, but was only able to deliver 22,200 cars, which was a miss from the 25,000 deliveries goal of the company for the quarter. The total deliveries for 2016 reached 76,230, which was below the 80,000 goal that Tesla has set.
According to Tesla, there are a total of 2,750 cars that were accidentally not counted for the quarter delivery report.
“Because of short-term production challenges starting at the end of October and lasting through early December from the transition to new Autopilot hardware, Q4 vehicle production was weighted more heavily towards the end of the quarter than we had originally planned. We were ultimately able to recover and hit our production goal, but the delay in production resulted in challenges that impacted quarterly deliveries, including, among other things, cars missing shipping cutoff for Europe and Asia,” Tesla said in a statement that was released on Tuesday.
On Tesla’s report, the net order for Model S and X during the fourth quarter were up b 52% compared to the Q4 net orders from 2015 and 24% higher from the previous quarter of the year.
Tesla’s goal to be able to reach 500,000 deliveries by 2018 and 1 million by 2020 is greatly doubted by many analysts and investors based on the recent performance of the company.
For 2017, Tesla plans to release the newest addition to its car models, the Model 3, which will join Model S and X among Tesla’s automobile selection.
According to reports, Model 3 is expected to range around $35,000, which was below the offered price of the Model S at $66,000 and to be released officially by October this year. Tesla has assured prospect buyers that the lower price rate does not affect the performance of the model in any way.
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