The Silicon Valley auto maker's shares fell almost 5% in midday trading to $335.74 - the lowest point in more than a month - after rising about 69% this year through last week on enthusiasm for the coming Model 3 sedan, which is central to Tesla's plan to sharply increase total sales.
The Model 3 is to start around $35,000 and with a $7,500 federal electric auto tax credit, could cost $27,500. The automaker expects to produce 100 units of the Tesla Model 3 by August.
That figure is less than previous estimates. What remains to be seen is whether Tesla can indeed hit its succeeding targets so Model 3 can truly live up to its goal of being a vehicle for the masses. (TSLA) has been a company valued, analyzed and judged based on the sales potential of mass-market cars that haven't launched yet, a major selloff on account of a slight quarterly delivery shortfall for the company's existing, costlier vehicles is a little odd at first glance.
The company reported this week it had delivered 22,000 vehicles in the second quarter and 47,100 in the first half.
Despite some disappointing earnings and vehicle delivery results for TSLA, shares of Tesla stock have skyrocketed almost 70% year-to-date.
The Tesla Model 3 is now priced at $35,000 and is set to begin production this July. First-half company sales of 1,301,102 vehicles represent a 3.8 percent decline versus 2016.
Shares of the Palo Alto, Calif., company slipped to $327.09.
The Tesla Model 3 is unlikely to experience delays in deliveries that were due to production issues with the battery packs. They now have a $314.00 target price on the electric vehicle producer's stock.
Earlier this week, Tesla announced the first of its Model 3 vehicles, referred to as the electric "car for the masses", will roll off the assembly line Friday and go on sale on July 28.
"While it is nice to see Tesla finally hit a stated target on time, we question whether 30 vehicle deliveries essentially built by hand count as "mass production, '" said Jeff Osborne of Cowen". The same issue is now the primary concern of the markets when it comes to the company's Model 3 production, release, and deliveries.
Tesla Inc. (NASDAQ:TSLA) stock recently peaked up reaching up to new heights with an all-time high of $383. Tesla shares were up over 60% so far in 2017. That leaves many potential owners miles from a service centre. FMR LLC owned about 15.12% of Tesla worth $6,804,556,000 as of its most recent filing with the SEC. Volkswagen plans more than 30 electric vehicle models by 2025.
The company is bolstering its efforts in other ways, too.