Tesla 2016 results: Net loss of $675,000 despite increased revenues
24 February 2017
Tesla increased revenues from $4 million (€3.8 million) in 2015 to $7 million (€6.6 million) in 2016, with the lion’s share generated by the automotive division and the rest by the energy generation and storage and services divisions. However, the company still suffered a net loss of $675,000 (€638,000), albeit down from $889,000 (€840,000) in 2015.
Tesla produced 84,000 cars in 2016 and expects to deliver 47,000 to 50,000 Model S and Model X vehicles combined in the first half of 2017, equating to growth of between 61% and 71% compared with the same period last year.
Limited production of the brand’s compact Model 3, due to retail at about $35,000 (€33,000), is scheduled to start in July, with volume deliveries commencing in the second half of 2017. This is a major turning point for Tesla as it evolves from a small niche automotive manufacturer of high end electric vehicles to a mass market manufacturer. Bolstered by the Model 3, Tesla annual production in excess of 500,000 units is planned for 2018, with this figure climbing to more than one million cars by 2020. However, Bloomberg commented that Tesla is 'burning through cash' and may soon need to raise more capital to produce the Model 3 to ensure it reaches mainstream consumers.