In 2016 Tesla reported a loss of $774 million in its $7 billion reported revenue. This represents an improvement from 2015, during which it lost $887 million on its revenue of $4.04 billion. Tesla’s final quarter of the year saw losses of $.69 a share, which was less than the predicted loss of $1.04. Overall, Tesla increased profits this past year, mainly due to the Model S and Model X electric cars.
In the final three months of the year, Tesla delivered approximately 22,000 vehicles. This brings the grand total to 76,230 vehicles for the year, just shy of its 80,000 car goal. Although the automaker came up short, this was still a strong showing since it increased vehicle deliveries by 51% from the previous year.
Tesla recently made two major acquisitions, buying out the companies SolarCity and Grohmann in November and January. Using SolarCity, Elon Musk is working to incorporate aesthetically appealing solar panels home roof power generation. He remarked, “I’ve never seen a solar roof that I would actually want...every one of them that I’ve seen is worse than a normal roof, without exception. So unless you beat a roof on aesthetics, why bother?” The tiles, created using hydrographic coloring, come in a variety of designs, including French slate, smooth glass, and Tuscan tile. Grohmann is a manufacturing company based in Germany which Tesla hopes will help ramp up production, and help it reach its goal of manufacturing 500,000 cars annually by 2018. This figure represents a 6-fold increase from their numbers this past year.
According to Tesla’s most recent shareholder letter, Tesla is “on track to start limited vehicle production in July” of the Model 3. Projections show that Tesla should “exceed 5,000 vehicles per week at some point in the fourth quarter and 10,000 vehicles per week at some point in 2018.” Some analysts question these expectations, remarking that Tesla has traditionally had issues meeting its goals. Bloomberg reported in January 2017 that “musk has a history of setting ambitious targets and timelines for Tesla and coming up short.” Speculation regarding a delay of the Model 3 negatively affected share prices just this past week.
The Model 3, which Tesla is now working to manufacture is being promoted as its “most affordable car yet,” at $35,000, getting 215 miles per charge. In order to make this a reality, Musk admits to pushing Tesla “very close to the edge.” However, he maintains that the expenditure is in the best interests of the company, and that Tesla will make up it's somewhat disappointing fourth quarter.