What To Expect From Tesla This Year

Tesla Motors Inc TSLA has been struggling so far this year— the company's share price has fallen nearly 30 percent since the beginning of January.

However, the pullback in share prices could present an opportunity for investors who see the firm making a comeback this year. Here's a look at what traders are expecting to see from Tesla in the coming year.

Increased Deliveries

When Tesla announced its fourth-quarter results, the company emphasized the potential for growth in 2016. The firm is expecting deliveries for ramp up to between 80,000 and 90,000 this year, a sizable jump from the 50,600 seen in 2015. However, many are skeptical about that guidance, especially since the carmaker has consistently missed delivery estimates for the past two years.

Related Link: Tesla, Exxon Lead List Of Top Insider Trades Of Last Week

Strong Demand

One of Tesla's major draws is the strong demand it has drummed up for its vehicles. The company's Model X orders rose 75 percent last year. This figure is made all the more impressive by the fact that the car isn't displayed at all in any of Tesla's stores and the firm doesn't invest any money into advertising the car. Not only that, but the Model X is considered a luxury SUV, one of the fastest growing categories in the auto sector.

Model 3

Another catalyst for Tesla this year is the firm's Model 3 vehicle. The car will be sold at a much lower price point, $35,000, and could attract a new pool of customers. So far, interest in the car has been high and CEO Elon Musk said he is expecting to see a healthy number of orders placed when reservations for the car are taken in March.

Energy Storage

Tesla's energy storage business is another factor that could be appealing to investors. The company set up Tesla Energy about a year ago, and demand for Tesla's energy products appears to be in strong. Tesla completed work on a Gigafactory in Nevada where its energy products will be made, and many believe this shift will be positive for the firm's bottom line as renewable energy gains attention across the country.