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Tesla cuts prices as 4Q deliveries miss analysts' estimates
Tesla reduced prices of its Model 3, Model S, and Model X vehicles by $2,000 in the United States today, to appeal to customers during the gradual phase-out of federal electric vehicle tax credits. The tax credit for Tesla buyers dropped from $7,500 to $3,750 as of January 1st. It will gradually be phased out this year, dropping by 50 percent every six months. Shares of Tesla fell more than 8 percent at the opening bell this morning after the company announced price cuts and fourth-quarter sales figures that fell short of Wall Street estimates. Tesla said in a press release before the markets opened, it delivered 90,700 vehicles from October through December. Analysts polled forecast 92,000, influenced by the expectation that buyers would capitalize on the tax credit before it started to phase out. Tesla said fourth-quarter deliveries were 8 percent higher than its previous quarterly peak in the third quarter of 2018. The company says it produced nearly 87,000 vehicles in the fourth quarter, also 8 percent above its previous quarterly record set in the third quarter. The California based company's 2018 sales included almost 146,000 Model 3 cars and just over 99,000 of the more expensive Model S sedan and Model X SUV. Tesla said that it delivered over 245,000 electric cars and SUVs last year, nearly as many as all previous years combined.