Tesla Motors saw its share prices fall by more than 11 percent after announcing fewer-than-expected deliveries for the first quarter of the year.
The EV manufacturer delivered 63,000 vehicles in the first three months of 2019. This includes 50,900 Model 3s, which fell short of analysts’ estimates of 58,900 units according to Reuters. By comparison, Tesla delivered 90,966 cars in total during the fourth quarter of 2018.
Despite the lower than expected deliveries, Tesla has reaffirmed its prediction to deliver somewhere between 360,000 and 400,000 vehicles this year, adding that the orders for the Model 3 in the US outpaced what the carmaker could deliver during the first quarter.
Frank Schwope, an Nord LB analyst said that Tesla’s numbers are “more shocking than disappointing”, adding that there are doubts whether Tesla can deliver 400,000 cars in 2019. Tesla’s history of missing its arguably ambitious targets make it more difficult for investors and analysts to believe the company’s 2019 projection.
RBC analysts added that the Model S and Model X deliveries are “very dissapointing”, estimating that the lower numbers will result into over $1 billion shortfall in revenue compared to previous estimates.
In addition, Musk’s legal fight with the SEC has raised worries from Tesla’s investors about the potential of the company’s founder being restricted on his activities. His lawyers will argue that Musk didn’t violate a fraud settlement with the SEC and should not be held in contempt in a federal court hearing.