Tesla’s 4Q net loss doubles

Tesla still hasn’t turned a profit. At $35,000, it’s about half the price of its first two models, and the Model 3 could be Tesla’s key to the mass market.

Going forward, the company expects to deliver 80,000 to 90,0000 new cars in 2016, divided among both Model S and Model X vehicles.

Tesla’s cash reserves dropped to $1.2 billion as of December 31 from $1.9 billion a year earlier, despite a sale of shares last summer.

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

The base model Model S has a minimum range of 240 miles, but the Model 3 probably won’t go quite as far. The company delivered only 206 SUVs in the fourth quarter and it curtailed production last month to work out some quality issues.

Tesla is expected to preview the Model 3 in an event March 31, though it’s not clear whether the company will reveal the entire vehicle. 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.

“There was some hubris there, with the X”, Musk said. The 90D battery that powers the Model S would have cost a staggering 90k back then. I’m not sure anyone will make a vehicle like this again.

Tesla hasn’t been around for long but it has made a name for itself in the motoring world. It plans to achieve gross margin of 30% by the end of year for Model S, while margins for Model X are expected to reach 25% with continued improvement in 2017. On Thursday, Musk used his personal Twitter account to announce that his company will be releasing an all-electric vehicle starting at $35,000. 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.

Launched in 2003, Tesla has never posted a profit despite its single stock success and a positive and innovative image among celebrities and the general public.

It plans to invest US$1.5 billion to add capacity and start production at a huge mega battery factory in the Nevada desert.

In the fourth quarter, Tesla’s net loss more than doubled to $320 million, hurt by the lower-than-planned Model X production. Revenues missed on a narrower margin, with Tesla reporting $1.75 billion against the estimated $1.78 billion.

To highlight the split among Wall Street observers, investors, and other stakeholders, analysts at Stifel even alluded to a Dr. Jekyll and Mr. Hyde scenario for Tesla.