Tesla Misses Deliveries by 12%; Stock Plunges
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by CHRISS W. STREET4 Jan 2017newport beach, ca668
Tesla’s stock plunged by $1.5 billion in after-hours trading on Tuesday following the company’s announcement that it missed Wall Street’s vehicle delivery estimates for the fourth quarter of 2016 by 12 percent.
Tesla Motors, Inc. announced fourth quarter deliveries of 22,200 units and 76,230 units for the year. The report was below Tesla’s guidance to analysts of 25,000 deliveries for the quarter and 80,000 for the year. It also trailed Tesla’s third quarter deliveries of 24,500 in the third quarter.
But for a company that has negative cash flow, and which is committed to delivering 1,000,000 cars a year by 2020, it should not be surprising that failing to meet delivery commitments causedTesla’s stock valuation to plunge immediately.
