Tesla’s big news event for today was dominated by the official unveiling of the long-awaited $35,000 Model 3. Excitement over the new low-cost sedan was sapped, however, after Elon Musk delivered disappointing news about Tesla’s profitability prospects.
Tesla Unveils $35,000 Model 3
$35,000 Tesla Model 3 Available Nowhttps://t.co/xZ0J4rbbgM
— Tesla (@Tesla) February 28, 2019
The Model 3’s new $35,000 version will have a 220-mile battery pack range. New buyers will only be able to make purchases online.
Here’s a look at the bare bones Standard Model 3 specs. There is a range of options available, and they’re noted on the company’s website.
Musk had hinted about the announcement in a cryptic tweet Wednesday. Tesla had suspended all orders on its website and redirected users to a page teasing the mystery announcement.
Elon Musk Cagey on $35,000 Model 3 Profitability
It wasn’t long before critics started hurling questions about this big reveal. Musk was off-putting during the announcement call, which didn’t sit well with some listeners.
Anyone else find it bizarre that in a presser on the cheaper Model 3, that Elon would not answer a question from a reporter about the profit margin on the $35,000 Model 3? "Yeah, we're not going to answer a question like that. Next question."
— Kirsten Korosec (@kirstenkorosec) February 28, 2019
The reveal is likely not enough to mitigate the other issues the EV maker is dealing with. Perhaps this was just a way to get investors’ minds off of the looming debt payment coming due on Friday.
Musk said Tesla is not expecting to be profitable in the first quarter. He added that the firm would “likely” turn a profit in Q2.
“Given that there is a lot happening in Q1, and we are taking a lot of one time charges, there are a lot of challenges getting cars to China and Europe, we do not expect to be profitable. We do think that profitability in Q2 is likely.”
Tesla Stock Falls After Hours
On that news, Tesla’s stock price slid in after-hours trading. As of the time of writing, TSLA shares were down to $308 after closing at $319.88 on Thursday for a decline of around 3.65 percent.