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Tesla shares fall the most in a week on Wednesday, company produces 86 555 vehicles in fourth quarter, cuts prices in the US

Tesla Inc (TSLA) announced on Wednesday that it had manufactured and delivered at a daily rate of almost 1 000 vehicles during the fourth quarter.

Teslas quarterly production totaled at 86 555 vehicles, or an 8% growth over the third quarter. The company managed to produce 61 394 Model 3 vehicles in Q4, in unison with its guidance and also 15% more compared to the third quarter, as well as 25 161 Model S and Model X vehicles.

At the same time, Teslas quarterly deliveries surged 8% over Q3 to a total of 90 700 vehicles. The company said that quarterly deliveries of Model 3 vehicles had risen 13% over Q3 to 63 150 units. However, the figure fell short of FactSet estimates of 64 900 vehicles.

The company also delivered 14 050 Model X and 13 500 Model S vehicles during the fourth quarter.

Tesla shares closed lower for a second consecutive trading session on NASDAQ on Wednesday. It has also been the steepest daily loss since December 24th. The stock went down 6.81% ($22.68) to $310.12, after touching an intraday low at $298.87, or a price level not seen since December 26th ($294.09).

Shares of Tesla Inc went up 6.89% in 2018 compared with a 1.04% drop for the benchmark index, Nasdaq 100 (NDX).

In 2017, Tesla’s stock surged 45.70%, thus, it again outperformed the Nasdaq 100, which registered a 31.52% return.

For the entire 2018, the company managed to deliver a total of 245 240 vehicles, or 145 846 Model 3s and 99 394 Model S and Model X vehicles. Tesla noted that, at the end of the fourth quarter, as many as 1 010 Model 3s and 1 897 Model S and Model X vehicles were in transit to clients, with delivery being expected in Q1 2019.

The electric car maker also noted that its inventory levels remained the lowest within the automotive industry.

Last but not least, Tesla said it would take steps to partially absorb lower federal EV tax credit, which, as of January 1st, decreased to $3 750 from $7 500 previously. Therefore, starting January 2nd, the prices of Model 3, Model S and Model X vehicles in the United States will be reduced by $2 000, the US auto maker pointed out.

“The price cut is what’s driving the stock lower, as it openly acknowledges the sunset of subsidy dollars is a material headwind,” Roth Capital Partners analyst Craig Irwin was quoted as saying by Reuters.

According to CNN Money, the 31 analysts, offering 12-month forecasts regarding Tesla Inc’s stock price, have a median target of $325.00, with a high estimate of $530.00 and a low estimate of $210.00. The median estimate represents a 4.80% upside compared to the closing price of $310.12 on January 2nd.

The same media also reported that 12 out of 34 surveyed investment analysts had rated Tesla Inc’s stock as “Buy”, while 9 – as “Hold”. On the other hand, 7 analysts had recommended selling the stock.

Weekly Pivot Levels

By using the traditional method of calculation, the weekly levels of importance for Tesla Inc (TSLA) are presented as follows:

Central Pivot Point – $321.40
R1 – $348.71
R2 – $363.55
R3 – $390.86
R4 – $418.17

S1 – $306.56
S2 – $279.25
S3 – $264.41
S4 – $249.57

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