Model 3 production, says Musk, will start in late 2017 – more than 18 months after the reveal. It also expects to achieve an adjusted full-year profit despite a planned investment of $1.5 billion in additional production capacity in Fremont and new cell production at its battery factory in Nevada.
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Tesla shares soared about 10% in after-hours trading after the company predicted a 60 to 80% increase in vehicle sales this year and assured it would turn a profit on an attuned basis.
But it’s not been an easy period for the company. The Model S, a luxury sedan, was launched in 2012, while the Model X, an SUV/people carrier crossover, was launched previous year.
The Tesla Model 3 bookings are at $1,000 and the balance $34,000 closer on to the delivery date.
But reportedly that price tag is likely to be reduced further by government subsidies for electric vehicles in place around the world.
The long wait for the Tesla Model 3 is nearly over. The company previously said it delivered 17,192 Model S cars and 208 Model X SUVs in the fourth quarter and delivered 50,580 vehicles for all of 2015.
“The challenge at the moment for electric cars is really encouraging the public to try them, experience them, realize the benefits and also to get over that misconception around range anxiety”, he said. Tesla’s estimate of being net cash flow positive in 2016 is misleading, he said, because it included draw-downs from its $1 billion asset-backed loan.
Tesla shareholders were pleased with the company’s positive outlook for 2016.
American electric vehicle company Tesla Motors is burning through cash following severe financial losses during 2015, according to full-year financial statements announced by CEO Elon Musk.
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Tesla’s cash reserves dropped to US$1.2 billion as of December 31 from US$1.9 billion a year earlier, despite a sale of shares last summer. It will travel more than 200 miles on a single battery charge and would be available for as low as $30,000 after tax credits.
