Tesla disappointed investors Wednesday, announcing that it delivered 90,700 vehicles during the fourth quarter — short of Wall Street forecasts despite its efforts to ramp up production.
Tesla also said it boosted production during the quarter, churning out 86,500 vehicles, up from 80,142 during the third quarter.
The electric car maker's shares fell by as much as 10.2 percent in morning trading Wednesday. Its stock rebounded somewhat by the afternoon to about $313 a share, down by about 6 percent from Monday's close of $332.80.
"Tesla shares tend to a have a lot more noise and volatility than most, but we think investors who are willing to take a longer-term view of the story will be rewarded handsomely and continue to believe Tesla is on track to post one of the market's most robust year-over-year earnings increases in 2019," said CFRA analyst Garrett Nelson.
The company also announced that it's cutting prices on all of its models by $2,000 to help offset a reduction in federal tax credits for drivers who buy electric vehicles. The $7,500 federal tax credit for Tesla cars was cut in half as of Tuesday.
Although the delivery numbers were 2,000 fewer than expected in a FactSet survey of analysts, Wedbush Securities analyst Dan Ives told CNBC they were consistent with his prediction. He said the cut in prices was likely weighing on the stock.
"It was a move that was within the realm of possibility, but it caught investors off guard," he said.
Bearish investors are likely interpreting the price cut as an attempt to stimulate demand, but Ives said it was more of a way to soften the blow from the tax credit drop.