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Tesla misses on Q4 earnings but still has our attention

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