Tesla has been forced to cut prices on its Model 3 sedans after missing missing expected deliveries on the vehicles. The price cuts also target an expected loss of demand from the end of federal tax credits for Tesla in 2019. The Wall Street Journal’s Tim Higgins reports:
Chief Executive Elon Musk had promised to increase sales and production of the Model 3 in the fourth quarter from the third quarter. He spent the final weeks of the quarter urging buyers to take advantage of the $7,500 federal tax credit that phases out for the company this year.
Deliveries of the Model 3 in the fourth quarter rose to 63,150 from 1,550 in the period last year. Analysts surveyed by FactSet had expected Model 3 deliveries to rise to 64,900.
The car, which starts at $46,000, is Mr. Musk’s bet that Tesla can make a more affordable vehicle as part of his vision for broader adoption of electric vehicles in the auto industry. Producing the Model 3, however, proved harder than he expected and Tesla missed several self-imposed deadlines to ramp up production to the rate of 5,000 a week.
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