Tesla CEO Elon Musk predicting Tesla Motors profitability in 2013
Tesla Motors CEO Elon Musk is again repeating his claim that Tesla Motors will be profitable in 2013, according to a Dow Jones report published today. Given the company's current burn rate as it ramps up production of the Tesla Model S and X electric cars this may be a bold claim, but it is one he has made before. The claim rests on the assumption that manufacturing, orders and purchases of Tesla's high end electric cars will proceed as expected.
At the June 2012, Elon Musk went over the numbers and explained the reasoning behind this prediction. However there continues to be a large "short interest" in Tesla Motors' stock indicating there is a large number of stock traders betting against the company.
In 2012 and 2013 the company will be selling only the Model S, and expects to sell 5,000 units in 2012, and 20,000 units in 2013. The Tesla Model X is expected to go to manufacturing in 2014. This means that during 2012 and 2013 the company expects to sell 25,000 units of the Model S, and the price for that car ranges from the neighborhood of $50,000 to over $100,000 depending on options selected. I expect the "sweet spot" in the Model S line is the mid-range model with SuperCharger.