Benzinga - by Shanthi Rexaline, Benzinga Editor.
Shares of EV maker Tesla, Inc. (NASDAQ:TSLA) fell in premarket trading on Wednesday, fueled by concerns about the company potentially falling short of its fourth-quarter delivery targets.
In premarket trading, the stock slid more than 1% to $234.26, according to data from Benzinga Pro.
Tesla has been trading within a range below the $250 level since the release of its third-quarter financial results on Oct. 18.
Despite a broader market rally on Tuesday, Tesla’s stock dropped over 1%, triggered by weekly China insurance registration data reporting 15,400 units for the week ending Dec. 10. Gary Black from Future Fund noted Tesla’s weekly numbers fell below the previous three-week average of 16,800 units. Quarter-to-date China registrations stand at 120,000 units, with only three weeks left. Black emphasized Tesla needs to average 12,300 insured registrations per week to surpass its second-quarter China record deliveries of over 156,700.
Another factor contributing to the stock’s decline could be the exclusion of Tesla’s Model 3 rear-wheel drive and long-range variants from the $7,500 EV tax credit starting in the new year.
The company also issued a massive recall of over 2 million vehicles due to concerns over their autosteer systems.
Traders should also remain vigilant about the upcoming Federal Reserve decision, as it has the potential to introduce volatility into the market.
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