Elon Musk: Tesla to accept orders on new vehicle

At $35,000, the Model 3 will cost about half the price of the base version of the Model S. And buyers will get tax breaks – there’s a $7,500 federal deduction, and some states offer as much as $2,500 in credits.

“Heading into Q4, investor concern was focused on cash flow, so we think the headline of…net cash flow positive guidance for 2016 will likely create a lot of excitement”, UBS analyst Colin Langan said.

Tesla hasn’t been around for long but it has made a name for itself in the motoring world.

The first Model 3 vehicles are expected to be delivered in late 2017, according to Tesla’s letter to shareholders.

Tesla plans to begin installing production machinery this year.

That’s in addition to the now shipping Model S sedan and Model X SUV, and the company recently confirmed it still experts to hit that $35k price target before applying electric vehicle incentives.

Tesla’s volatile stock now hovers around $154 per share, down from a 52-week high of $286.65 in July.

Revenue rose almost 27% to a $1.21bn.

Tesla says it’s accelerating production of its Model X, which premiered previous year. With the Model S and announced but not-yet-released Model X being out of the price range of many, Elon Musk and team have been working towards a more affordable solution for years. He said Tesla increased its vehicle deliveries by 76% in the fourth quarter over the same quarter in 2014.

Tesla, which is investing heavily in new vehicles and battery technology to drive the market for electric cars, reported a fourth quarter loss of $320 million (roughly Rs. 2,183 crores) on revenue of $1.2 billion (roughly Rs. 8,189 crores). The company posted positive 2016 guidance on Wednesday, saying it expects to deliver 80,000 to 90,000 new vehicles this year, noting it is aiming for non-GAAP profitability for the year. A portion of the batteries produced at the plant will be used in the Model 3.

Mr. Musk said, that despite the last few months being “quite excruciating” he feels “very good about things right now”, the company has guided for Model X production to take off in late March to about a 1000 units a week.