Tesla may not be profitable, but its outlook is appealing to investors. In its Q4 earnings report today, the company took a loss of $0.69 per share on revenue of $2.28 billion. Analysts had been more optimistic, predicting a loss of $0.43 per share on revenue of $2.18 billion. The company produced over 50,000 cars in the second half of the year, but did not meet its full-year goal to produce 80,000 cars in 2016—info it shared back in January. However, Tesla stock was up about 2% in after-hours trading.
That may be because the outlook for Tesla is always bright. The company notes that it is set up to launch both the Model 3 and solar roof in the second half of 2017. In the first half of 2017, Tesla expects to deliver 40,000-50,000 S and X models. While the company will spend between $2 billion and $2.5 billion on Model 3 ramp up, there is some good news for investors: Tesla will focus on profitability for its storage and solar business. That said, 2017 is a big year for Tesla. The company will have to prove it can hang as a car producer, not a niche product producer. RR