Tesla Projects Fast Growth to Maybe 90000 Deliveries in 2016

Additionally, Tesla’s entry-level $35,000 Model 3 electric auto is on schedule for productions and deliveries in late 2017.

Tesla Motors’ earnings weren’t spectacular, but it set a solid date for unveiling the Model 3: March 31st.

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.

The slower-than-planned launch of the company’s Model X sport utility vehicle during the last quarter added $67m in unplanned costs, Tesla said. Unlike the Model S, Tesla’s first fully in-house made vehicle, the Model 3 will be designed “for ease of manufacturing”, Musk said on the call.

Musk later posted on his Twitter account that Model 3 reservations, with a $1,000 deposit, would be accepted starting March 31 at Tesla stores and April 1 online. It must allow Tesla to address the mid-range sedan while its “Model S” and “Model X” are high-end cars with a price of 70,000 dollars for basic versions and can exceed 130,000 dollars.

What do you think of the price point for the Tesla Model 3? For the full year, the company has projected a positive operating profit, against the consensus full year adjusted earnings estimate of $1.71 per share.

Tesla delivery figures are closely watched by the financial community because they are a barometer of the state of the production group, which has so far only one plant. “Moderate GAAP profitability is expected in the fourth quarter”, Musk wrote in a letter to shareholders on Wednesday.

With the Model 3 priced at less than a third of previous models, potential customers may wonder whether the vehicle will sacrifice style or efficiency. Analysts have been concerned about production delays on new models, about the company’s ability to hit its production targets, and whether consumers will buy the pricey cars.

Styling, price and a realistic driving range beyond 300km will be essential if Tesla’s Model 3 is to remain competitive against Chevrolet’s all-new Bolt, the first model built on GM’s new electric vehicle platform.