How In The World Is Tesla Losing This Much Money?

/ Comments

Hopefully the Model 3 will change all that.

Tesla may be the premier electric automaker in the world with the Model S and the Model X, but the brand lost a lot of money last year. According to The Detroit Bureau, the electric automaker lost roughly $900 million in 2015. Tesla announced that it lost more money in the fourth quarter of 2015 than it did in all of 2014, a cool $320 million. The automaker lost $889 million on revenue of $4 billion for the full year compared with a loss of $294 million on revenue of $3.2 billion in 2014.

Even with the massive amounts of lost cash, investors are still happy with the electric automaker. One of those reasons being the debut of the long-awaited Model 3. Tesla confirmed that its entry level Model 3 sedan will be revealed on March 31 in a letter to shareholders and customers while discussing its fourth quarter financial results. The unveiling of the electric sedan will bring in a new set of customers and pre-orders. Tesla's shares rose more than 10 percent after the brand forecast a 60 to 80-percent increase in vehicle sales this year. Tesla plans to start generating positive cash flow in March. The Model 3 will sell for $35,000 before incentives and production is set to start in 2017.

Everything You Should Know About The Rivian R1S SUV
Everything You Should Know About The Rivian R1S SUV
How The Corvette Will Evolve Over The Next Five Years
How The Corvette Will Evolve Over The Next Five Years
Jason Davis
Source Credits: www.thedetroitbureau.com

Join The Discussion

Popular Tags Cars