Tesla boosts delivery forecast, shares climb 13%

Elon Musk: Model 3 'will eventually be made in China'

Tesla still isn’t turning a profit. But the carmaker boosted its delivery guidance when it posted earnings, sending its shares up 13% in after hours trading.

In his letter to shareholders, CEO Elon Musk confirmed that sales will grow between 60% and 80% in the year ahead. Musk also reaffirmed that Tesla plans to deliver at least 80,000 vehicles in 2016 and raised the high end of the guidance to 90,000, quelling investor fears that the company may not be able ramp up production fast enough.

Tesla records an auto sale when it takes an order for a car, and a delivery when a car is delivered to a customer

Related: Tesla fixes its auto-park feature after Consumer Reports raises safety concern

Musk also said Model S sedan deliveries jumped 76% last from the same quarter last year, and that he doesn’t anticipate any hangups with Tesla’s new Model X SUV. It began delivering those vehicles in late 2015, and Musk said “we are now significantly increasing Model X production.”

There’s also the Model 3 to look forward to. At $35,000, it’s about half the price of its first two models, and the Model 3 could be Tesla’s key to the mass market. It’s expected to be unveiled March 31.

Tesla (TSLA) spent billions of dollars investing in a new factory and other capital projects in 2015, and the company ended the fourth quarter $114 million in the red. Analysts had expected it to post a small profit of $3.89 million.

Related: Tesla’s worst nightmare … cheap gas

It’s been a rough year for Tesla stock. Before the company posted earnings, its shares were down 38.4% year-to-date.

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