Tesla Motors (NASDAQ:TSLA) announces that it expects to deliver between 80K and 90K Model S and Model vehicles in 2016.
Q4 automotive gross margin was 20.9%, excluding $8M of ZEV credit revenue. Higher labor and overhead costs in relation to actual Model X production volume factored in. Q4 services revenue was up 47% to $97M.
Tesla sees its average selling price moving higher this year as Model X sales increase. Model S gross margin is seen approaching 30% by the end of the year, while the Model X margin should be around 25%.
Tesla on funding: “We plan to fund about $1.5 billion in capital expenditures without accessing any outside capital other than our existing sources that support our leasing and finished goods inventory.”
The Model 3 will be unveiled on March 31. Production and deliveries are slated for late in 2017.
Tesla Energy is expected to add to positively to cash flow this year.
More details are expected on the company’s conference call which is scheduled for 5:30 PM ET. TSLA +4.39% after hours to $149.86.
Tesla shareholder letter is available here