The EPA continues to roll back regulations on coal plants to allow them to emit more pollution.
Moving beyond the success of Q4, we are taking steps to partially absorb the reduction of the federal EV tax credit (which, as of January 1, dropped from $7,500 to $3,750). All this and more on Green Car Reports.
"Combined with the reduced costs of maintenance and of charging a Tesla versus paying for gas at the pump - which can result in up to $100 per month or more in savings - this means our vehicles are even more affordable than similarly priced gasoline vehicles", Tesla said.
"Our inventory levels remain the smallest in the automotive industry", the company said Wednesday.
At the same time, Tesla said it would cut the prices of its Model S, Model X and Model 3 by about £1,590 because tax credits for electric vehicles are due to end in the US.More news: STRANGER THINGS Season Three Arrives On July 4th
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As of writing, Tesla stock is trading down 7.45% at $308.00 per share. Investors perceived the news as a signal of a low demand for Model 3s, which immediately sent Tesla's shared down 2 percent.
Chief Executive Elon Musk is under intense pressure to deliver on his promise of stabilizing production for the company's mass market sedans, seen crucial to it easing a cash crunch and achieving long-term profitability.
Musk now plans to turn attention to filling Model 3 orders in Europe and China starting in February, which could help offset some of the potential drop in United States demand linked to the shrinking tax credit.
Starting Wednesday, the company will be reducing its price for Model S, Model X and Model 3 vehicles in the U.S.by $2,000, it said. The company earned $311.5 million during the three months ending in September, swinging from a loss of $619 million at the same time previous year.
Tesla turned a profit for the third quarter but is unprofitable for the first nine months of 2018, and cash flow remains a concern for investors. Once it did so, the company had two more quarters until its full tax credit was cut in half.
At the same time, it has become known that Tesla failed to deliver the expected number of cars this year. Moody's predicted the company would have to raise more capital.