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.