Tesla Model 3 Could Sell For $25000

But in a letter to customers and shareholders Wednesday, the company said it plans to be profitable in 2016 by non-GAAP measures, and to turn a profit by GAAP measures in the fourth quarter of this year.

Tesla shares were up 13 percent in after-hours trading after closing at $143.67.

In terms of guidance, Tesla plans to deliver 80,000 to 90,000 new Model S and Model X vehicles in 2016, representing accelerating growth over 2015 at the midpoint of the range.

On that front, Musk also Tweeted in September that the company would start production of the Model 3 “in about 2 years”.

Tesla spent billions of dollars investing in a new factory and other capital projects in 2015, and the company ended the fourth quarter $114 million in the red. Analysts polled by Thomson Reuters prior to the earnings report expected the company to eke out a slight gain of $3.9 million and a loss of 1 cent per share. But Palo Alto’s Tesla predicted Wednesday that it would reach “moderate” profitability in the fourth quarter of this year.

Tesla said in a release that it only delivered 206 Model Xs in the last quarter, the first full quarter it was on sale. 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.

It’s been a rough year so far for Tesla.

Q4 services revenue was up 47% to $97M. Analysts had a consensus revenue estimate of $1.79 billion for the quarter.

One of the big issues Tesla has been dealing with of late has been the Model X as manufacturing it is proving to be much more hard than previously thought.

Tesla had been burning cash a rate of more than $400 million a quarter for more than a year as its spending ramped up and deliveries of the Model X hadn’t begun. “We expect to be at positive cash flow starting next month, and continuing into Q2”, he added.

The latest info states that Model 3 is going to be unveiled next month and before you ask, the vehicle is going to function completely on electricity.

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.