Tesla Inc. said Jan. 2 that its production and deliveries grew in the fourth quarter of 2018, but the company's share price tumbled nearly 8%.
The automaker also said it is reducing prices on its models to help offset the reduction of the federal electric-vehicle tax credit.
Tesla shares were down 7.5% in late morning trade at about $307.75. They opened 8.1% lower.
On Jan. 1, the tax credit for Tesla customers dropped from $7,500 to $3,750. The automaker said it is lowering the price of its Model S, X and 3 vehicles by $2,000 to help offset that.
The federal tax credit starts phasing out once an automaker sells 200,000 electric cars — a number that Tesla hit in 2018.
The California-based automaker said it produced 86,555 vehicles in the fourth quarter, up 8% from the third quarter. This included 61,394 Model 3 vehicles, up 15% from the third quarter, according to the company. The rest were Model S and X vehicles.
Tesla delivered 90,700 vehicles in the fourth quarter, up 8% from the previous quarter. This included 63,150 Model 3 vehicles, up 13% from the third quarter; 13,500 Model S vehicles; and 14,050 Model X vehicles. Wall Street estimates had Model 3 deliveries at 63,700, according to Bloomberg.
The company delivered 245,240 vehicles in 2018, including 145,846 Model 3 cars and 99,394 Model S and X vehicles.
In February, Tesla will begin delivering Model 3 in Europe and China, with an expansion to other international markets later in 2019. This will include a right-hand drive variant of the Model 3.