Tesla Shares Plummet Despite Record-Breaking Production
Is this an opportunity for Rivian to dethrone Musk’s company?by Sidd Dhimaan, on
Tesla announced a record-breaking number of deliveries in the Q4 of 2018, but that did not reflect in its financial reports. Tesla delivered 90,700 vehicles from September to December - a new record since its inception, but the share prices took a hit. The shareholders felt a certain unsteadiness as stock prices declined and investors expressed their disappointment over failed expectations to close out the year. That is harsh on Tesla.
Tesla manufactured 86,555 cars in the fourth quarter and had an inventory of 4,145 cars from the previous quarter. Musk even tweeted that Tesla had released all pending vehicles for sale where owners could not take delivery before the end of the year. Tesla tried to move as many cars as possible before the $7,500 tax credit was slashed in half at the year-end.
The Model 3 made up for nearly 70-percent of all deliveries, as Tesla manufactured 63,150 copies of the Model 3, 14,050 units of the Model X, and 13,500 of the Model S.
There is no word on what models were carried over from the third quarter. To date, Tesla has delivered 245,240 vehicles to customers. This includes 145,846 Model 3s and a total 99,394 units of the Model S and X combined. Nearly half of all deliveries took place in fiscal year 2018, making it the largest year for Tesla growth on record. However, this growth did not impress the shareholders. Stocks fell nearly 8.7-percent to $303.96 from Tuesday’s closing of $332.80,
What They Had To Say
Speaking with CNBC regarding the losses, Gene Munster, founder of Luop Ventures, stated that the financial firm still believes there are production issues in play that are limiting the number of potential deliveries. Furthermore, Luop Ventures doubled-down on its belief that the number of deliveries is not tied to demand (or rather, lack thereof) in a company-issued statement.
This bold claim was explained saying the demand for Tesla is tied to financial incentives such as the EV tax credit which will be eliminated by the end of 2019.
Munster believes that through lower-priced configurations and European demand, Tesla will be able to continue to grow steadily during 2019.
An Opportunity For The Rivals To Step Up
With all that said, things have not looked good for the Musk-startup lately.
Tesla had a controversial 2018 and this report suggests that the misery might be carried forward to 2019 as well.
Tesla entered the automotive scene with EVs back when the concept was not even in its infant stage. Since then, there’s no looking back for the Musk-led company. Tesla has steamrolled the mainstream manufacturers in the EV segment to claim the throne within a short span of time. Companies like BMW, Porsche, and Audi, to name a few, have rolled out some very competent products, but Tesla has always been a step ahead.
Rivian Might Be The New Tesla
However, there is this new kid on the block who goes by the name Rivian.
Rivian has shown us glimpses of genius through its electric pickup truck, the R1T.
In all honesty, it is tough to convince people to go for an electric car itself and here, Rivian has made an electric pickup truck with a mind-blowing towing capacity and a sprint to 60 mph in three seconds. After this, Rivian also debuted its SUV that will take on the Tesla Model X. Even here, the Tesla has been outdone in majority of the areas.
Although both these products are due in the next decade, Tesla needs to get its shit together right away and focus on this wrecking ball that has Rivian written all over it. Not to mention, Faraday Future is looking to get back up on its feet and Byton, too, will be here soon. Rivian did well in 2018, and all the reveals were just the teasers; 2019 might be the year where Rivian could actually steal Tesla’s thunder.
Do you think this is just a little hiccup, or will Tesla have to do some serious planning to avoid attacks from all sides? Let us know your thoughts in the comments section below.
Read our full review on the 2018 Tesla Model X.
Read our full review on the 2018 Tesla Model 3.
Read our full review on the 2018 Tesla Model S.