Tesla stock slide may halt with Model 3 unveil

The company has said the auto would become available in late 2017 though analysts from Barclays and Morgan Stanley say mid- to late- 2018 is more realistic. Chevrolet Bolt, the all electric auto has similar price tag and will go on sale a year prior to Model 3, but that does not bother Tesla.

Tesla shares soared about 10% in after-hours trading after the company predicted a 60 to 80% increase in vehicle sales this year and assured it would turn a profit on an attuned basis.

Musk later posted on his Twitter account that Model 3 reservations, with a $1,000 deposit, would be accepted starting March 31 at Tesla stores and April 1 online. It plans to achieve gross margin of 30% by the end of year for Model S, while margins for Model X are expected to reach 25% with continued improvement in 2017. Investors were selling off shares amid concerns that low oil prices would affect sales of electric vehicles. That expectation was proven at least partially untrue by Tesla’s shipping forecast. Tesla officials said Wednesday they expect production of the Model X – which is priced between $80,000 and $132,000 – to pick up momentum this year.

The highly-anticipated Model 3 was the most notable vehicle to come up during the call, and although Musk didn’t divulge anything new specifications-wise, he did drop a few newsworthy nuggets.

The automaker launched the Model X in September past year, following multiple delays owing to production issues. It definitely won’t have the distinctive falcon wing doors that Tesla’s Model X crossover has.

Tesla Motors Inc.’s fourth-quarter and full-year 2015 financial results are scheduled to be released after the stock market closes Wednesday.

Musk said Tesla would generate positive cash flow even after investing US$1.5 billion (RM6.17 billion) to add capacity to a huge battery factory in Nevada, and start producing battery cells there.

New details about the Model 3 might generate enough hype on social media to get investors interested in the stock again, Johnson said.