Tesla (TSLA - Get Report) launched its long-delayed $35,000 Model 3 Thursday in a move that wound up being overshadowed by CEO Elon Musk's announcement the company probably won't be profitable in the current quarter.
Shares of Tesla fell in after-hours trading Thursday after Musk told reporters on a call that expenses associated with launching sales of its Model 3 in Europe and China as well as one-time charges during the quarter mean "we do not expect to be profitable," in the current quarter, CNBC reported.
Shares fell 3% to $310.02 in after-hours trading.
The company said in a blog post it would move its sales operations online in a bid to save costs. The move "will enable us to lower all vehicle prices by about 6% on average, allowing us to achieve the $35,000 Model 3 price point earlier than we expected," the company said in the post.
The cheaper version of the Model 3, teased by Musk in tweets Wednesday afternoon, is aimed at broadening the company's market share to buyers intrigued by its technology, but put off by the high prices of its luxury models and higher-end Model 3s.
Tesla faces increased pressure to generate profits as a number of large convertible bond issues come due.
It began shipping higher-end Model 3s to Europe this month and has broken ground on a factory in China.
Musk is under a court order to explain why a tweet earlier this month discussing production goals didn't violate his settlement of securities fraud case with the SEC last fall.
Shares of Tesla rose $3.70 to $318.45 during the regular session Thursday.