Tesla expects to become profitable

BERLIN: Tesla Motors Inc Chief Executive Elon Musk on Wednesday promised investors that the electric luxury car maker will start making money this year, sending the company's shares up sharply despite a wider fourth-quarter loss.

Tesla 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.

Tesla shares are still down more than 30 percent since the beginning of the year, reflecting investor concerns about continued losses.

Musk and the company's new chief financial officer, Jason Wheeler, sought to assure investors on a conference call on Wednesday evening that Tesla is determined to cut costs, hit production targets and stanch losses. "Cash is king," Wheeler said.  Musk said Tesla would make its first net profit by the fourth quarter.