The Tesla Model 3 can now be sold in Europe. AP
The Tesla Model 3 can now be sold in Europe. AP

Tesla shares hammered on lower Model 3 deliveries



Tesla plunged in the US after mildly disappointing Model 3 deliveries and an across-the-lineup price cut prompted concerns that the car maker may bump up against a ceiling for demand.

The 63,150 Model 3s Tesla handed over to customers in the fourth quarter trailed the about 63,700 average analyst estimate. The company announced a $2,000 price cut on each of its vehicles to help make up for US buyers now being eligible for only a $3,750 federal tax credit for the next six months, half what they were getting previously.

Tesla shares fell as much as 9.7 per cent to $300.52 as of 7.05pm UAE time on Wednesday. The stock advanced 6.9 per cent last year while most other automakers slumped.

Whereas Tesla began 2018 with production being the big challenge, chief executive Elon Musk is starting this year with worries about how much of a market is left for pricier versions of the Model 3. The company said more than three quarters of Model 3 orders in the last three months of the year were from new customers, rather than reservation holders, suggesting many consumers are still waiting to buy versions of the sedan at the long-promised $35,000 sticker price.

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“This was a good quarter in terms of production ramp and strong underlying demand, but Tesla came up shy of bull expectations and this will be the focus of the street,” said Daniel Ives, an analyst at Wedbush Securities. “We also believe the $2,000 price cut to help subsidise the lower EV tax credit is a move that was not fully expected.”

It will be a few more weeks before Tesla confirms whether it was profitable for a second consecutive quarter, but the company’s ability to sustain a high level of production - it built 61,394 Model 3s and 86,555 vehicles total in the last three months - will go a long way toward that goal.

Mr Musk now plans to turn attention to filling Model 3 orders in Europe and China starting in February, which could help offset some of the potential drop in US demand linked to the shrinking tax credit.

Tesla fell just short of its target to deliver 100,000 of its more expensive Model S and Model X vehicles for the year, selling 99,394 units.

Nayanthara: Beyond The Fairy Tale

Starring: Nayanthara, Vignesh Shivan, Radhika Sarathkumar, Nagarjuna Akkineni

Director: Amith Krishnan

Rating: 3.5/5

COMPANY PROFILE
Name: HyperSpace
 
Started: 2020
 
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
 
Based: Dubai, UAE
 
Sector: Entertainment 
 
Number of staff: 210 
 
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
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The specs

Engine: 1.5-litre 4-cylinder petrol

Power: 154bhp

Torque: 250Nm

Transmission: 7-speed automatic with 8-speed sports option 

Price: From Dh79,600

On sale: Now

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The specs: 2018 BMW X2 and X3

Price, as tested: Dh255,150 (X2); Dh383,250 (X3)

Engine: 2.0-litre turbocharged inline four-cylinder (X2); 3.0-litre twin-turbo inline six-cylinder (X3)

Power 192hp @ 5,000rpm (X2); 355hp @ 5,500rpm (X3)

Torque: 280Nm @ 1,350rpm (X2); 500Nm @ 1,520rpm (X3)

Transmission: Seven-speed automatic (X2); Eight-speed automatic (X3)

Fuel consumption, combined: 5.7L / 100km (X2); 8.3L / 100km (X3)

From Zero

Artist: Linkin Park

Label: Warner Records

Number of tracks: 11

Rating: 4/5

COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
The specs
Engine: Long-range single or dual motor with 200kW or 400kW battery
Power: 268bhp / 536bhp
Torque: 343Nm / 686Nm
Transmission: Single-speed automatic
Max touring range: 620km / 590km
Price: From Dh250,000 (estimated)
On sale: Later this year
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