Tesla reported an adjusted loss of 87 cents per share in the fourth quarter, while analysts expected a profit of 10 cents a share, according to Thomson Reuters I/B/E/S. Revenue rose 59 percent from the previous year, while its loss grew from 13 cents a share. For the year, the analysts estimated a loss of $1.26 per share on $5.4 billion in revenues, or a $2.93 per share loss counting some expenses.
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The company said its Model 3 – with an estimated price of $35,000 or around half that of its best-selling vehicle – would be unveiled on March 31, with production and deliveries to start in late 2017.
The automaker hit record production levels a year ago, delivering 50,508 Model S and Model X vehicles.
Tesla said in a release that it only delivered 206 Model Xs in the last quarter, the first full quarter it was on sale. The electric automobile company’s new innovations will expand its revenue base and earnings, which will support its share price. Like the Model S and Model X before it, initial deliveries will be fitted with expensive options and packages to help cover the sedan’s development costs.
Investors are also eagerly awaiting next month’s announcement of Tesla’s Model 3, which will be marketed as a low-priced electric vehicle for mainstream consumers. For the year, Tesla lost almost $889 million, $6.93 per share. In the coming months, Tesla’s massive new Gigafactory will kick into a higher gear by producing batteries for cars and home energy storage, as well as new Tesla Energy products. Fans of the brand did have a bit of good news tucked in towards the end with the official unveil for the Tesla Model 3 set for March 31st.
Musk later noted that the company expects the first versions of the Model 3 that are delivered to be “relatively highly optioned versions”.
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But the carmaker has since clarified that $35,000 price tag doesn’t include the significant federal and state incentives available to electric auto buyers, which would likely take the cost closer to $US25,000. The company in the past has overestimated its delivery projections, and demand for electric cars may be sluggish if gas stays stubbornly cheap.
