Here’s Why Tesla Shares Are Down Today
Tesla Motor’s stock dropped around 8% at one point Monday morning, following news that the automaker had delivered at the lower end of its car shipment target for 2015, including shipping low levels of its new electric car, the Model X.
At the same time, the broader market slumped on an overall drop in Chinese stocks.
The electric car maker released its car shipment numbers on Sunday morning. Tesla (TSLA) says it delivered 50,580 cars in 2015, hitting the low range of its car shipment target for the year. The company was hoping to ship between 50,000 and 52,000 cars this year.
Tesla delivered 208 of its new Model X cars, an SUV that it started first shipping in September. Tesla says it made 507 of the Model X cars in the fourth quarter and expects to be able to produce 238 Model X cars per week this year.
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That Tesla hit its annual car shipment targets at all is a feat. The company has increased production of its Model S cars dramatically, while it’s been making the Model X for the first time. The amount of Model S cars that Tesla delivered in the fourth quarter of this year was 75% more than it delivered over the same period last year.
Initially, Tesla said it would ship 55,000 cars this year. But in August, because of the difficulty of making both cars at the same time, it revised that prediction slightly to between 50,000 and 55,000. Then in November, the company adjusted its guidance again by saying that the number would be 50,000 to 52,000.
Tesla’s shipment targets weren’t as high as what one analyst, Global Equities Research managing director Trip Chowdhry, predicted last week. Chowdhry said that he thought Tesla had delivered 18,300 cars in the quarter, including 300 Model X cars.