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Will 2016 Be Tesla Motors, Inc.'s Best Year Yet?

Electric-car maker Tesla Motors remained a hot topic in automotive commentary during 2015. But despite all the attention the company received during the year, the stock price at the time of this writing -- at around $217 -- implies a slight decline in the share price for the full year of around 2%. Could 2016 reinvigorate an upward climb in the stock price?

Data in chart based on quarterly shareholder letters. Years marked by asterisks indicate estimates based on Tesla management commentary and outlook. Chart source: author.

No wonder Tesla is predicting it can produce and deliver significantly more vehicles in 2016 than it will deliver this year. The electric-car maker believes vehicle sales can jump by around 38,000 units between 2015 and 2016, according to management outlined in Q3. This would more than double the company's estimated vehicle sales growth between 2014 and 2015 of 18,400 units, and it would be Tesla's best sales growth ever when measured in absolute vehicle deliveries.

Of course, sales growth doesn't translate to investor returns. The market has essentially priced in considerable growth for Tesla, going forward. But if it can grow its sales this meaningfully in 2016, shareholders can be more confident in the company's ability to execute on its ambitious longer-term growth plans to deliver 500,000 vehicles per year by 2020.

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The article Will 2016 Be Tesla Motors, Inc.'s Best Year Yet? originally appeared on Fool.com.

Daniel Sparks owns shares of Tesla Motors. The Motley Fool owns shares of and recommends Tesla Motors. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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