You Need $1000 To Reserve Tesla’s Most Affordable Electric Car

Brooklyn’s statement echoes comments from Tesla chief Elon Musk made a year ago. One key to how investors view Tesla’s Q4 report and guidance is how production of the newly introduced Model X crossover SUV, with its falcon-wing doors, ramps up. What this ultimately means is that we can expect a huge volume of orders for the Tesla Model 3 and a waiting list that will go deep into next year and the following. The company was confident enough to say that its cash balance would increase in the current year from the level achieved in 2015. Tesla’s aggressive pricing puts the Model 3 slightly lower than the upcoming Bolt, which Chevy prices at $37,500 MSRP.

Revenue rose almost 27 percent to a record $1.21 billion on higher sales of the Model S and demand for the Model X, which launched in September.

On the call, however, Musk aimed higher for Model 3 competitors.

Tesla stock has steadily declined over the past couple months, so Wednesday’s quarterly investor call was an important chance for Elon Musk and co.to reassure investors that what they’re doing will continue to make money. But the carmaker boosted its delivery guidance when it posted earnings, sending its shares up 9% in after hours trading. Another example is for the residents of Colorado, where they will get an additional $6,000 while those based in California, Massachusetts and Tennessee will get an additional $2,500 incentive for purchasing an electric vehicle. Despite the less-than-favorable fourth-quarter earnings release on Thursday, the company’s stock jumped 10%, thanks both to its declaration it will have “net positive cash flow” in 2016 and the imminent Model 3 announcement.

Excluding certain expenses in the last quarter, the automaker reported a loss of $114 million, or 87 cents per share. Revenues missed on a narrower margin, with Tesla reporting $1.75 billion against the estimated $1.78 billion.

Tesla’s adjusted full-year revenue of $5.29 billion was slightly below analysts’ forecast of $5.38 billion. The boost came from the announcement that its lower-priced Model 3 sedan would be unveiled in March and have a scheduled production start at the end of 2017. Even at the $35,000 before incentives, the Model 3 will be much cheaper than the Model S that runs between $76,000 to $82,000.