Tesla stock jumps after 2016 plans unveiled

Tesla has now confirmed that the Model 3 will retail for $35,000, this is before rebates and incentives which will actually bring the price of this new EV down to around $30,000. Mr. Musk brushed off a comparison with the Bolt.

This hold on the market is impressive, given that, as Musk explained, Tesla does not advertise, pay for endorsements, or discount cars for anyone. 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.

The company said its Model 3 - with an estimated price of $35,000 (roughly Rs. 23,89,000) or around half that of its best-selling vehicle - would be unveiled on March 31, with production and deliveries to start in late 2017. Savings are also realized from the lighter weight of the 3 (20 percent, roughly) and "economies of scale" that Tesla has built over the years, including a new paint shop that the company says can handle 10,000 cars per week at full tilt. But the company said it's on track to be cash-flow positive this year. The firm run by CEO Elon Musk has since shattered that idea with-using their Model S as an example-a powerful luxury automobile that drives 255 miles between charges.

"Cash is king", Mr. Wheeler said.

Musk said Tesla would make its first net profit by the fourth quarter.

Tesla's revenues for the quarter improved to $1.21 billion from $956.7 million previous year.

Also of concern is the company's cash burn rate.

The slower-than-planned launch of the company's Model X sport utility vehicle during the last quarter added $67 million in unplanned costs, Tesla said. "The last several months have been quite excruciating".

Tesla said it expects to ship 80,000 to 90,000 Model S and Model X cars in 2016, beating forecasts that the company would only ship about 76,000.

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