Tesla Motors Inc Chief Executive Elon Musk assured its investors on Wednesday that the electric luxury car maker will start making money this year. The shares went up sharply despite a wider fourth-quarter loss.
The firm’s shares rose more than 10 percent in after-hours trading after the company forecast a 60 to 80 percent increase in vehicle sales this year and promised it would turn a profit on an adjusted basis. It will start generating positive cash flow in March.
The shares are still down more than 30 percent since the beginning of the year, reflecting investor concerns about continued losses.
Musk said Tesla would make its first net profit by the fourth quarter. It plans on investing $1.5 billion to add capacity and start production at a huge battery factory in Nevada.