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Tesla Says It Expects to Become Profitable in 2016

by Reuters and Jacob Pramuk, CNBC /

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Tesla Motors forecast deliveries of Model S sedans and Model X SUVs that topped analysts' estimates and said it expects to turn in a profit in 2016, sending its shares higher in after-hours trading Wednesday despite posting a much worse-than-expected quarterly loss.

The electric automaker reported a fourth-quarter adjusted loss of 87 cents per share on $1.75 billion in sales. Revenue rose 59 percent from the previous year, while its loss grew from 13 cents a share.

Related: Electric Cars Aren't Enough. Tesla Is Now Going Vegan

Analysts expected Tesla Motors to post earnings of 10 cents per share on $1.79 billion in revenue, according to a consensus estimate from Thomson Reuters.

Tesla said it planned to deliver 80,000-90,000 Model S and Model X vehicles in 2016, ahead of Wall Street's average expectation for about 79,000 vehicles, according to research firm FactSet StreetAccount.

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The company also said it planned to achieve profitability on an adjusted basis and also to be net cash flow positive for the full year 2016.

Tesla said its long-promised moderately priced car, the Model 3, would be unveiled on March 31.

For the current quarter, Tesla plans to deliver about 16,000 vehicles, which would mark an increase of 60 percent year over year. The automaker also anticipates that its average transaction price will increase this year as Model X becomes a larger share of its deliveries.

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