Tesla CEO says market value could rival Apple by 2025

Tesla Motors Inc missed fourth-quarter sales targets and analysts' profit expectations, but CEO Elon Musk said by 2025 Tesla's growth trajectory could take its market value to $700 billion, matching that of Apple Inc.

It was a glimmer of optimism capping a difficult quarter that saw the electric-car company struggle with production and delivery issues on several fronts, notably in China.

Expansion of the company's global sales network and development of the new Model X crossover increased operating expenses in the fourth quarter to $336.5 million, from $169.9 million a year ago.

Musk told analysts late Wednesday (US time) that Tesla should return to positive cash flow in late 2015, but said he did not see the need to raise additional funds "right now."

On Wednesday (US time), Tesla reported a quarterly loss of $107.6 million, compared with a year-ago loss of $16.3 million.

Revenue in the quarter climbed to $956.7 million, from $615.2 million a year ago.

The California-based maker of luxury electric cars delivered 9,834 Model S sedans in the quarter, well below Musk's earlier forecast of 13,000.

Tesla said it built a record 11,627 cars, boosting total production to 35,000 for the year. But the company delivered only 31,655 and said delays would push some deliveries into the first quarter of 2015.

Sales in North America in 2014 were flat, at about 17,400, or 55 percent of the total.

About 9,500 cars were delivered in Europe and about 4,750 to the Asia-Pacific region, including China, where sales began in April 2014.

Tesla expects to deliver about 55,000 cars globally in 2015, an increase of about 74 percent.

Musk said Tesla's $35,000 Model 3 should be in production by the second half of 2017, and that its design will not be as "adventurous" as that of the gullwinged Model X crossover, in order to keep the production schedule on track.