Tesla targets sales growth of up to 80% in 2016 image

The electric car automaker said it would start making profit this year, planning to boost its deliveries with about 60 – 80 percent.

Tesla CEO Elon Musk announced this week the company’s fourth-quarter results, also targeting a boost of up to 80 percent in its sales in 2016. Tesla’s cash reserves dropped to 1.2 billion dollars as of December 31 from 1.9 billion dollars a year earlier, and down 229 million dollars from three months earlier. However, Musk expects to generate positive net cash flow and achieve non-GAAP profitability in 2016. The slower-than-planned launch of the Model X sport utility vehicle during the last quarter added 67 million dollars in unplanned costs, Tesla said. The electric maker also plans to invest about 1.5 billion dollars this year in equipment to support cell production at the Gigafactory, to begin the production of the Model 3, to open about 80 retail locations and also to service centers and energize about 300 new Supercharger stations. In order to support its goal of making money, Tesla said it was targeting to sell 80,000-90,000 of its Model S and Model X this year.

Musk promised its long-awaited affordable electric Model 3 would be unveiled on March 31. The car is expected to have a starting price of around 35,000 dollars before government incentives and subsidies and will be launched in late 2017. The CEO increased his investment in Tesla last month by exercising and holding 532,000 stock options, a move that was worth approximately 100 million dollars, but Musk bought them at the price of only 6.63 dollars each. On Monday, he made the same move, buying another 676,000 shares.