Shares of Tesla (NASDAQ: TSLA) were slammed on Thursday, falling as much as 10.7%. As of 10:53 a.m. EDT, the stock was down 8.4%.
Continue Reading Below
The decline comes after the electric-car maker announced worse-than-expected first-quarter vehicle production and deliveries on Wednesday evening.
Deliveries for the quarter came in at 63,000, up 110% year over year but down 31% sequentially. On average, analysts expected Tesla to deliver 74,900 vehicles.
Production was also lower than expected for the quarter. Tesla produced 77,100 vehicles, compared to the consensus analyst estimate for 84,700. The primary reason for this shortfall was a 45% year-over-year decrease in Tesla's combined Model S and X production. Model 3 production of 62,950 vehicles, which was at a record high, was only 2.3% lower than analysts' average forecast.
The sequential decline in total vehicle deliveries was primarily due to challenges with the company's expansion to Europe and China.
Difficulties with shipping vehicles to customers overseas and several price cuts made during the quarter are expected to negatively impact net income, Tesla said. A loss for the period is likely since such a substantial drop in the sales of the company's pricier, higher-margin Model S and X will weigh heavily on results.
10 stocks we like better than TeslaWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Tesla wasn't one of them! That's right -- they think these 10 stocks are even better buys.
*Stock Advisor returns as of March 1, 2019