Elon Musk told investors that Tesla was “in striking distance” of positive cash flow. For the first quarter, the company expects to deliver 16,000 vehicles representing 60% YOY growth as the company was planning to lease directly as it did in the fourth quarter.
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The best production estimates have the Model 3 arriving towards the end of 2017.
But, according to a recent report from Bloomberg Business, the price tag could really be much cheaper.
That’s in addition to the now shipping Model S sedan and Model X SUV, and the company recently confirmed it still experts to hit that $35k price target before applying electric vehicle incentives.
On the other hand, the shareholders of Tesla Motors disregarded is huge quarterly loss and sent the stock higher by 9.63% to $157.50 per share after-hours. It missed on revenues, too, reporting $1.75 billion for the quarter, compared with the 1.79 billion analysts had expected.
For the full year, Tesla lost $889 million, wider than a $294-million loss in 2014.
In the fourth quarter, “we increased global deliveries over 76 percent year-on-year as Model S market share gains continued in every geographic region”, the letter said.
Tesla is reportedly hoping that the Model 3 will be their accessible, entry-level money maker, since it’s far more affordable than the Model S or Model X. In keeping with the more affordable approach to the Model 3, Musk added that no “signature” version of the vehicle would be released. Musk, who owns roughly a quarter of all Tesla shares, purchased more than 1.2 million additional shares within the past two weeks at a steep discount. Musk tweeted yesterday that the “Model 3 reservations ($1000 down) will be accepted in Tesla storage on March 31 and online April 1”. The Model 3 is seen as a key step in Tesla’s bid to become a mainstream automaker.
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In a conference call Wednesday, Musk said the company has been focused on meeting that challenge rather than boosting sales.
