What’s Happening at Tesla?

Sales down, but stocks up. Here’s why
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It’s been a rollercoaster 2016 for revolutionary electric car maker Tesla. As stocks were tumbling last month, CEO Elon Musk reinvested millions of stock options into his own company. Now, in February, stock is trending up even as the last quarter showed a substantial loss of $320 million.

Even with the financial instability, Wall Street is showing confidence in the Palo Alto automaker. The reason, according to Gizmodo, is that the company is on track to ship tens of thousands of cars—between 80,000 and 90,000 this year, which is above previous expectations.

The car deliveries expected this year include not only the workhorse Model S sedan, but the SUV Model X, which only launched last year. Rolling out the Model X was much more tumultuous than the company anticipated and only about 200 were delivered in 2015. Musk now says they have a handle on the SUV—which comes complete with gull-like doors that open vertically—and will pump out enough to satisfy demand.

The hefty delivery numbers helped calm trader worries that sinking gas prices are decreasing demand for eco-cars.

And while it’s still a ways off, and likely hasn’t affected stock value, the more affordable Model 3 remains on track for a late 2017 launch. Starting at $35,000, the Model 3 will greatly widen Tesla’s relatively-narrow market.