Tesla Motors' earnings weren’t spectacular, but it set a solid date for unveiling the Model 3: March 31st. However, we likely won't see all of it -- maybe as little as the exterior design. And there's good reason for that. By Elon Musk's estimation, Model 3 deliveries won't begin until the end of 2017.
The company delivered 76% more Model S cars in 2015 -- 14,037 in the fourth quarter alone -- than it did in 2014, and the company launched the new Model X in 2015, netting $1.75 billion. Despite the less-than-favorable fourth-quarter earnings release on Thursday, the company's stock jumped 10%, thanks both to its declaration it will have "net positive cash flow" in 2016 and the imminent Model 3 announcement.
However, Tesla Motors' stock is down by 37% so far in 2016 -- nearly a $12 billion loss on its own.
In spite of the overall downturn, company CEO and co-founder Elon Musk bought an additional $100 million worth of Tesla stock at the end of January.
The acid test for Tesla Motors will be its mass-market Model 3, which could be as cheap as $22,100 after tax incentives for some buyers. If the company can't turn a profit with that car, it might as well pack up and head home.
Tesla says it will be net cash flow positive in 2016. https://t.co/5pVDwVfcdt$TSLA shares are now up over 10%. pic.twitter.com/tIGNDUAwV9— MarketWatch (@MarketWatch) February 10, 2016
Update: Added the delivery timeline for Model 3 after Tesla Motors earnings call.