Tesla has reported first-quarter earnings that have fallen short of both the top, and bottom line estimates by analysts.
Among other details divulged in the company’s letter to shareholders were the sales figures for Tesla’s three models, and two of the three, namely the Model S and Model X are struggling, reaching less than 50% of forecasted sales.
“Deliveries of Model S and Model X declined to 12,100 vehicles in Q1 compared to our two-year run rate of roughly 25,000 units per quarter,” the company said.
“This decline was mainly caused by weaker Q1 demand due to seasonality, pull-forward of sales into Q4 2018 in the U.S. due to the first scheduled reduction of the federal EV tax credit in Q1 and discontinuation of our 75 kWh battery pack,” it added.
There were concerns that the Model 3, which costs comparatively less compared to its sister models, would depress sales but Tesla executives have been quick to refute this on a conference call following the report.
“3.5% of trade-ins for the Model 3 are coming from the Model S,” CEO Elon Musk said, adding that it’s a “tiny portion” of all trade-ins.
The average selling price for the Model 3, which starts at $39,500 in the US, is about $50,000, whereas the Model S and the Model X start at $78,000 and $83,000 respectively.
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