Tesla’s most affordable auto yet is about half the cost of the company’s Model S, which begins at around $70,000 with customizable options that can add to the price of the vehicle.
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Tesla reported fourth-quarter and full-year 2015 earnings on Wednesday – and to no one’s surprise the vehicle maker lost a lot of money: $0.87 per share, on revenue of $1.75 billion.
Tesla shares rose despite a wider fourth-quarter net loss of $2.44 a share, compared with a loss of 86 cents a share a year earlier.
Tesla lost $889 million, or $6.93 per share, for the full year.
Revenue rose almost 27% to a $1.21bn.
Some of the optimism in the face of the continuing loss comes from Tesla’s sunny disposition about its next moves. The company also expects to deliver around 80,000 to 90,000 Model S and Model X cars in 2016. The Elon Musk-led company expects to deliver 16,000 vehicles in the first quarter alone.
Musk said, “Tesla is approximately doubling its cumulative sales every year”. Musk had previously said that Model 3 would be shown in March 2016, but now he has announced a specific date. Today’s letter to shareholders marks the first time projections have gone up for Tesla looking forward, and Musk’s forthcoming conference call should also generate some positive waves.
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. 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. Analysts had anticipated 76,200 deliveries, Bloomberg reports.
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Tesla confirmed on Wednesday that its $35,000 entry-level Model 3 will be unveiled on March 31. 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.
