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The new Model S sedan, which will carry a price tag of $57,400

Tesla Motors CEO Elon Musk recently announced that the company would launch an all-electric Model S sedan next year. Now, Musk has told Bloomberg Television that next year's production of the new Model S has sold out, and that he expects Tesla to earn a profit in 2013.

Recent reports noted that Tesla has lost money on every Roadster sold, which includes the two-seat Roadster and the Roadster Sport, which had price tags of $109,000 and $128,500 respectively. The news came yesterday that a new Roadster will arrive in 2014, and that a range of vehicles are expected over the next four to five years as well, including the new Model S sedan, which will carry a price tag of $57,400.

"The Model S starts at half price of the Roadster, about $50,000," said Musk, noting that the original Roadster will no longer be in production and was always limited. "The Roadster is high price, low volume. Model S is mid-price, mid-volume. Our third generation, which will be in 3 or 4 years will be low price, high volume. It is the only strategy that could work because we need to build up the economies of scale."

Tesla Model S [Source: Tesla Motors]
The loss on each Roadster was just part of the problem for Tesla. The company is also facing scrutiny in regards to its worthiness of receiving government funding. Many have compared Tesla and Fisker Automotive's EV loans to the huge $500 million loan given to solar company Solyndra, which went bankrupt in September.

"I defended it and I have said if you have a portfolio of loans, and they're acknowledged to be high risk, you're going to have some failures in the mix," said Musk regarding Solyndra. "One should not expect to bat 1000. Critics say why can't the government bat 1000. The best venture capitalists on Earth can't bat 1000, why do you expect the government to?"

Musk is looking ahead to a brighter future for Tesla, brushing aside worries regarding competition such as that from BYD. Musk said he didn't think BYD's products were all that "great" or attractive anyway, and that the technology isn't all that strong. According to Musk, BYD needs to concentrate on the issues at hand in China.

Tesla Model S [Source: Tesla Motors]

The upcoming potential for a profit in 2013 and the Model S sellout have Tesla thinking optimistically toward the future where Musk envisions the entire industry going electric.

"I think the entire industry will go fully electric," said Musk. "I think that all modes of transport will go fully electric with the exception, ironically, of rockets. The question is just how soon.”

Source: Bloomberg Television

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RE: One hand feeds the other
By web2dot0 on 10/29/2011 8:48:04 AM , Rating: 1
Do you work for OPEC or something? :-D The price will go down because if people go all electric (a hypothetical situation), oil rigs will have to SHUTDOWN. In order to keep the operation running, they will have to lower prices.

If you and me don't need gas, you can make the price cost $100000/litre, and I wouldn't care.

BTW, if there is such a obvious signs of collusion, the gov't will step in. Your cynical view will not hold water.

The reality is it won't happen because you can turn the country into all electric overnight. But to say that IF the hypethetical situation happens nothing is going to change is ridiculous.

Besides, you actually WANT to make electric cars the norm because we will get rid of our dependance for oil. Is there something wrong with that? Swallow the blue pill because I really want to show you how deep the rabbit hole is.

RE: One hand feeds the other
By Kurz on 10/29/2011 12:10:39 PM , Rating: 2
Its actually the Red Pill.

Oil Rigs will shutdown, but only because the demand and the prices and income aren't there anymore to support the operation. Consumers drive demand and innovation not the other way around.

Though the question is where we going to get all that extra energy from? How will we effectively store electricity (Since so many Megawatt hours are wasted every day, chemical based batteries are not viable for this on a large scale)? How do we harvest electricity? All these questions must be answered.

RE: One hand feeds the other
By Dorkyman on 10/29/2011 4:40:32 PM , Rating: 2
I take it you've never taken an econ class, right?

And your hypothetical (if we all drove electric cars) makes as much sense as "You know, if pigs had wings they could fly." Well, yes, I suppose they could.

RE: One hand feeds the other
By jimbojimbo on 10/30/2011 3:02:08 PM , Rating: 2
Have you been watching the news for the past 40 years or so? OPEC's been pulling this crap for years! As alternative fuels get popular they've been known to up production to lower costs so as to make gasoline the better alternative again. Then when everything's back to gasoline they'll lower production to raise the prices. After all they don't want to pump all their supply out so they'll just lower production. They don't give one crap about shutting down rigs or laying off workers. They only care about how much money they keep making.

"The Space Elevator will be built about 50 years after everyone stops laughing" -- Sir Arthur C. Clarke

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