Tesla Inc. came out with its Q4 and full-year results on Wednesday and the company assured its investors that its Model 3 electric car, which is eagerly awaited, is right on schedule.
The executive analyst Michael Harley for Kelley Blue Book said, “Wall Street news aside, the real spotlight on Tesla remains its long-awaited Model 3. Musk has to take off his rose-colored glasses and focus on efficiently launching production of its most important vehicle to date. If the company can’t meet its output goals of 5,000 units per week by the end of 2017, which is highly optimistic considering the obstacles it has faced with prior model start-ups, the stumble may be the fall that breaks the company’s knees.”
The company put all such speculations to rest by saying that its new mid-market Model 3 is all set for initial production starting July this year with full volume production happening by September. There was speculation in the market that the Model 3 of Tesla has gone behind schedule.
For the Q4, the company lost 78 cents a share or $219.4 million on revenue of $2.3 billion. In the same quarter last year, Tesla lost $320.4 million, which comes to $2.44 a share on total revenue of $1.21 billion. As the company is working on its grand ambitions pumping in billions in capital investments under the leadership of Elon Musk, these losses were on expected lines.
Efraim Levy, an analyst working at CFRA Research said, “For Tesla, the story is not about today, the story is about tomorrow. It’s about the Model 3.”
It’s for the first time that the company, which is now Tesla and not Tesla Motors anymore, reported the results of the auto segment and sustainable energy segment together. Last year, it had acquired SolarCity, the solar panel installer for $2.1 billion. The numbers reported by the company on Wednesday, reflect the performance since the merger and hence has very little effect on the total results.
Post results, the CEO Elon Musk had a conference call with the analysts where he answered the questions on how the company plans to reduce the cost of its most awaited car. The target price of the car is between $35,000 and $45,000. Musk said that this vehicle is designed for manufacturing and hence it has all the options available for bringing the cost in the target zone.
The company also informed that the production of the battery packs has already started at its Gigafactory and soon they are going to add more Gigafactories.