Tesla starts taking Model 3 orders in China

Tesla starts taking Model 3 orders in China

The electric-car maker's 5.3 percent junk bonds due in 2025 were the biggest decliners in the market Wednesday morning. The EPA continues to roll back regulations on coal plants to allow them to emit more pollution.

The missed expectation is especially noteworthy because the fourth quarter of 2018 was the last period during which customers could earn a major federal tax credit for buying an electric vehicle, which would have boosted sales. Deliveries also grew to 90,700 vehicles, a number that's also 8% more than Q3 2018's all-time-high. The Model 3 starts at $35,000 but still can't be purchased for under $45,000.

In the fourth quarter, Tesla delivered 63,150 Model 3s, 13,500 Model S sedans and 14,050 Model X SUVs.

Tesla's 2018 production fell far short of a goal set almost three years ago of manufacturing 500,000 vehicles for the year.

Tesla's shares plunged on the first day of 2019 trading after the company unexpectedly announced it was cutting prices by $2,000.

Tesla also announced a $2,000 price cut on all of the Model 3, Model S and Model X to help US purchasers, who will get only a $3,750 federal tax credit over the next six months, down from the previous $7,500. The bonds slipped 2 cents on the dollar to 85.5 cents, the largest drop since September, according to Trace, the bond price reporting system of the Financial Industry Regulatory Authority.

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 USA demand linked to the shrinking tax credit.

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.

Whereas Tesla began 2018 with production being the big challenge, chief executive officer Elon Musk is starting this year with worries about how much of a market is left for pricier versions of the Model 3.

As of the end of September, the company reported $9.7 billion in long-term debt and another $3.6 billion in accounts payable owed to parts suppliers and other companies.

Tesla has released its production and delivery figures for the fourth quarter of 2018, capping off what could only be described as a historic year for the electric auto maker. Moody's predicted the company would have to raise more capital.

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