Tesla shares down after first-half deliveries came in at the low end of the forecast


Tesla Inc (NASDAQ:TSLA) shares fell 2.49 percent on Monday after the company announced that it shipped nearly 47,100 SUVs and electric sedans in the first six months of 2017. The deliveries were on the lower end of the forecast. The automaker had projected deliveries in a range of 47,000 to 50,000 for the first half.

The Palo Alto, California-based company said that shortage of new battery packs had restricted vehicle manufacturing till June. However, TSLA expects the deliveries of the Model X SUVs and Model S sedan to exceed deliveries in the first half.

Majority of investors are concerned about Model 3 outlook after CEO Elon Musk announced that the production of Model 3 would begin this week. Few industry experts have been doubtful about its planned July roll out after quality issues and production delays affected the launch of the Model X and Model S.

Tesla shares jumped over 60 percent so far this year amid hopes of strong launch of its Model 3, which would be its first vehicle intended for the mass market. TSLA stock has a 52-week range of $178.19- $386.99. The company’s market cap is $58 billion, higher than that of Ford Motor Co. and General Motors Co.