Published: 14:06 GMT, 2 January 2019 | Updated: 16:37 GMT, 2 January 2019
Tesla shares fell 9 percent on Wednesday after the electric car maker delivered fewer-than-expected Model 3 sedans in the fourth quarter and cut prices for all its vehicles in the United States to offset a reduction in a green tax credit.
Tesla had over 3,000 Model 3s left in inventory in the United States as of Sunday, automotive news website Electrek reported on Monday, citing people familiar with the matter.
Chief Executive Elon Musk is under intense pressure to deliver on his promise of stabilizing production for the company's mass market sedans, seen crucial to it easing a cash crunch and achieving long-term profitability.
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Tesla shares fell after the electric car maker delivered fewer-than-expected Model 3 sedans in the fourth quarter and cut prices for all its vehicles in the US.
Under a major tax overhaul passed by the Republican-controlled U.S. Congress late last year, tax credits that lower the cost of electric vehicles are available only for the first 200,000 such vehicles sold by an automaker.
The tax credit is then reduced by 50 percent every six months until it phases out.
The company said it was churning out almost 1,000 of the cars a day, broadly in line with Musk's promises but slightly short of Wall Street expectations.
The $2,000 cut in prices,