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Tesla Model 3 Confirmed For March 31st Unveil With $35K Price Tag

By Paulo Acoba

MIAMI, FL - FEBRUARY 19: People look at a Tesla Motors vehicle on the showroom floor at the Dadeland Mall on February 19, 2014 in Miami, Florida. Tesla said today it earned $46 million in the fourth quarter on a non-adjusted basis, or 33 cents a share, causing shares in the company to jump 12 percent. (Photo by Joe Raedle/Getty Images)
MIAMI, FL - FEBRUARY 19: People look at a Tesla Motors vehicle on the showroom floor at the Dadeland Mall on February 19, 2014 in Miami, Florida. Tesla said today it earned $46 million in the fourth quarter on a non-adjusted basis, or 33 cents a share, causing shares in the company to jump 12 percent. (Photo by Joe Raedle/Getty Images) /
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Tesla shareholders received fourth quarter earnings with news about the Tesla Model 3’s official unveil. 

If you’ve been following Tesla’s stock since the beginning of the year, you’re well aware of their epic nosedive from a year ending high of $250 down to around $143 where it is today. Now it’s official as Tesla has released its fourth quarter earnings earlier Wednesday with revenues well below expectations. Fans of the brand did have a bit of good news tucked in towards the end with the official unveil for the Tesla Model 3 set for March 31st.

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In response, Tesla’s stock has reacted generally well with projected deliveries far surpassing forecast. According to Business Insider, initial forecasts had Tesla only delivering 16,000 Tesla Model X and S vehicles but according to their fourth quarter report they expect to deliver 80,000 to 90,000 units.

According to the earnings report,

"We expect to generate positive net cash flow and achieve non-GAAP profitability for the full-year 2016. Thus our cash balance at the end of 2016 should increase from the year-end 2015 level."

PALO ALTO, CA – NOVEMBER 05: Two Tesla Model S cars are displayed at a Tesla showroom on November 5, 2013 in Palo Alto, California. Tesla will report third quarter earnings today after the closing bell. (Photo by Justin Sullivan/Getty Images)
PALO ALTO, CA – NOVEMBER 05: Two Tesla Model S cars are displayed at a Tesla showroom on November 5, 2013 in Palo Alto, California. Tesla will report third quarter earnings today after the closing bell. (Photo by Justin Sullivan/Getty Images) /

As for the Tesla Model 3,

"We plan to invest in equipment to support cell production at the Gigafactory, begin installation of Model 3 vehicle production machinery, open about 80 retail locations and service centers, and energize about 300 new Supercharger locations."

It’s no secret that Tesla’s giant giga factory in Nevada is up and running. In response, the price of precious metals that are used in the production of lithium-ion batteries has fallen accordingly. Cheaper batteries, although not a perfect indicator of Tesla pricing their Model 3 close to  $35,000,will directly reduce production costs.

According to Musk, the Tesla Model 3 will be a lot easier to manufacture given its lighter weight and smaller size. As with all new Teslas that first hit the market, expect the first ones to sell well above $35,000 due to being early adopters stuffing them with options.

Next: Tesla Model S Burns To The Ground At Norway Supercharger

Tesla’s products are selling well worldwide and although investor confidence hasn’t been all that high as of late, Tesla’s concrete plans and projections for deliveries should see that stock price respond accordingly.

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