Tesla reported an adjusted loss of 87c per share in the fourth quarter, while analysts expected a profit of 10c a share, according to Thomson Reuters I/B/E/S.
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Model 3 is an important platform for the electric-car company that’s best known for its Model S sedan and Model X SUV.
Tesla’s stock, which has been battered by 40 percent this year, rose 9 percent in after-hours trading to $157 despite the poor earnings.
With the Model 3 priced at less than a third of previous models, potential customers may wonder whether the vehicle will sacrifice style or efficiency.
The American manufacturer of luxury electric cars Tesla announced Wednesday it would be profitable in 2016, a first that boosted the title on Wall Street. That expectation was proven at least partially untrue by Tesla’s shipping forecast.
The Model 3 announcement and strong sales projections for the Model S and Model X helped temper Tesla’s otherwise disastrous fourth-quarter earnings, which fell well below analysts’ projections. It is unclear exactly what details will be revealed next month, with Tesla CEO Elon Musk himself telling analysts he hadn’t yet made up his mind on how much of the auto to show off.
“I feel very good about things right now”, Mr Musk said. The loss, of $2.44 per share, compared to a loss of 86 cents per share in the same quarter a year ago. For the full year, the company lost $6.93 per share on revenue of $4.05 billion. Tesla Model 3 will be available for around $35,000 before factors like the federal tax credits or state rebates are included. There’s no guarantee just yet of what this auto is even going to look like (although that hasn’t stopped artists from doing renderings), but we do know that the vehicle will deliver in late 2017.
By the fourth quarter, Tesla would make its first net profit Musk said.
Elon Musk told investors that Tesla was “in striking distance” of positive cash flow.
Around that price point, the Model 3 will have several competitors.
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Speculation aside, Musk has confirmed the Model 3 will be less expensive with a blue-collar price target about 50 per cent below Model S, or around $US30,000.
