Tesla’s share price under heavy pressure after poor Q1 sales
Electric car maker Tesla’s share price suffered heavy double-digit losses on Thursday after the company recorded its largest ever decline in car sales. Tesla Inc slumped close to ten percent lower on the Nasdaq, as investors feared that Tesla would be unable to meet its 2019 sales targets.
Telsa announced that it had delivered only 63,000 car vehicles during the first fiscal quarter, marking a near thirty percent decline in car sales from the previous financial quarter. Most analysts had been anticipating that the company would have sold over 75,000 cars during the first quarter.
The car maker said that the decline in car sales had occurred due to logistical problems, which stemmed from its international distribution network. Tesla noted that it was the first time that the company had made deliveries of the Model 3 Tesla automobile to Europe and China, causing a backlog of over 10,000 undelivered cars on the companies factory floor.
Tesla officials also told investors that it would still meet its annual electric car sales target of between 360,000 and 400,000 for the rest of 2019, which is still a significant improvement in 2018. Analysts noted that despite the drop in car deliveries in the first quarter, the figures were still much higher than the first fiscal quarter of 2018.
CEO Elon Musk had previously stated that the electric car maker would build 500,000 new Telsa cars via the social media platform Twitter. Mr. Musk has recently stepped away from social media after the U.S Securities and Exchange Commission fined him heavily for saying that he had secured funding to take the company private at $420.00 per share over social media.
Tesla Inc Daily Chart | Source: ActivTrader
Elon Musk is in court this week after the U.S SEC accused him breaking his recent agreement with them, sparking fears that the revolutionary CEO could be pushed aside from the company. Technically, Tesla’s stock is starting to look bearish on the daily chart, with price edging closer to a major technical breakdown below the $250.00 level.
Written by Nathan Batchelor, External Analyst
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