In his tweets, Musk said consumers could begin pre-orders next month with a $1,000 deposit.
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The loss, of $2.44 per share, compared to a loss of 86 cents per share in the same quarter a year ago. Online reservations will be accepted starting April 1.
At the earnings call, Tesla revealed how its Model S became the sole vehicle in its class to have enjoyed growing sales past year.
Tesla expects to ship 80,000 to 90,00 Model S and Model X cars in 2016, beating forecasts that the company would only ship about 76,000 vehicles.
There is also a certain amount of uncertainty about the source for all the lithium required to make its batteries.
The slower-than-planned launch of Model X of the company sport utility vehicle during the last quarter added $67 million in unplanned costs, Tesla said.
At $35,000, the Model 3 will cost about half the price of the base version of the Model S. And buyers will get tax breaks – there’s a $7,500 federal deduction, and some states offer as much as $2,500 in credits.
Tesla’s weaknesses include its deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.
Baird also found optimism in the ramp up of Model X production, the expected debut of the Model 3 prototype and expanded capacity at the Tesla auto and battery plants. Tesla stock has made a bad start to the year with shares down close to 40% YTD.
Musk is not anxious about competition in the industry particularly from the all-electric Chevrolet Bolt, which has a similar price tag to the highly-anticipated $35,000 Model 3.
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Tesla lost $889 million, or $6.93 per share, for the full year. Before the company posted earnings, its shares were down 38.4% year-to-date. If Tesla is able to grab 25%-30% of the mid-range EV market with Model 3, then the company should be able to sell 250k-300k Model 3 vehicles every year maybe by the second year after its launch.
