Tesla’s 4th quarter net loss doubles but shares up on outlook
DETROIT — Tesla Motors posted its 11th straight quarterly loss Wednesday, and its results badly missed Wall Street’s forecasts. But the electric car maker’s shares soared anyway on news that its lower- priced Model 3 sedan is on schedule to be released next year.
Tesla said it will unveil the much- anticipated $ 35,000 car on March 31 and expects to start production at the end of 2017.
CEO Elon Musk said he’s not worried about competition from the all-electric Chevrolet Bolt, which will have a similar price tag and range and will go on sale one year before the Model 3. He noted that Model S sedan sales rose in 2015 even as luxury competitors like the Audi A7 and Lexus LS fell.
“Tesla is approximately doubling its cumulative sales every year. I think that’s pretty exciting and unusual,” Musk said on a conference call with analysts and media.
Tesla’s shares had fallen in recent days as investors worried that the Model 3 would be delayed. Investors also weren’t happy with the slow ramp-up of Tesla’s new Model X SUV. The company delivered only 206 SUVs in the fourth quarter and it curtailed production last month to work out some quality issues.
But Tesla said Wednesday it’s accelerating Model X production and expects to make 1,000 SUVs per week by the second quarter.
Musk said the past few months have been “excruciating” as the company dealt with various hiccups, including problems with the Model X’s chrome door strips and large front window. He said the company added too many new features at once to the X.
“There was some hubris there, with the X,” Musk said. “The net result is that the Model X is an amazing car. I honestly think it’s the best car ever. I’m not sure anyone will make a car like this again. I’m not sure Tesla will make a car like this again.”
Despite the problems with the X, sales of the Model S — which is made at the same Fremont, Calif., factory — jumped 76 percent in the fourth quarter to 17,272. Tesla delivered just over 50,000 vehicles for the year, up 60 percent from 2014. The company said it plans to deliver between 80,000 and 90,000 vehicles this year.