Tesla Is Losing Money But Making More Cars

Tesla Is Losing Money But Making More Cars

Despite losing money last quarter, Tesla shares are still up after their earnings report. Why? Because the company is beating estimates on how many cars it will be able to produce this year. Tesla expects to ship 80,000 to 90,00 Model S and Model X cars in 2016, beating forecasts that the company would only ship about 76,000 vehicles. The Elon Musk-led company expects to deliver 16,000 vehicles in the first quarter alone. Following the earnings report and strong projections, shares rose by as much as 10 per cent in after-hours trading.

It's important to note that Tesla's forecast does not include one of the company's most highly anticipated products: the $US35,000 ($49,334) Tesla Model 3, which will be revealed on March 31. The car is expected to bring electric vehicles to the masses and will launch in 2017.

Experts were surprised by the strength of Tesla's earnings report because many believed that lower petrol prices -- which are at their lowest levels since 2009 -- would cut into the demand for electric vehicles. That expectation was proven at least partially untrue by Tesla's shipping forecast.




    I'm amazed of how many Tesla's i see in Melbourne. Most are the S model as well. If I won the lottery I'd get one straight away. Pity they're so large though. I'd like to see one the size of a ford focus but with the power of the S.

      I like everything about the S. I'd snap it up in a second. But I'm one of those weird people who likes large sedans.

    As good as the car might be US $50K is still tonnes more money than I want to spend on a car. Hopefully the company doesn't go the way that Mr Tesla went.

      $50k Australian dollars isnt that bad, especially given the money you will save on fuel and services.

    they range from 130k to 201k brand new...

      I think he's talking about the new one. The cheaper one.

        thats pretty good then! but range is less

Join the discussion!

Trending Stories Right Now