Tesla Motors Inc (TSLA) Primed for Profit in 2013

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Can others compete?
Thus far, Tesla’s Model S has seen strong demand, despite its premium price. As competitors bring new electric and plug-in hybrid cars to market, the question is whether these will hurt demand for Tesla’s cars. For example, General Motors Company (NYSE:GM) is planning to begin production of the Cadillac ELR plug-in hybrid later this year. While not an all-electric car, the ELR will probably provide a premium experience at a lower cost than the Model S. However, Tesla’s innovation and “cool factor” should keep it ahead of GM in this segment for the time being, as luxury car buyers are not very price sensitive.

The article Tesla Primed for Profit in 2013 originally appeared on Fool.com and is written by Adam Levine-Weinberg.

Fool contributor Adam Levine-Weinberg has no position in any stocks mentioned. The Motley Fool recommends General Motors and Tesla Motors. The Motley Fool owns shares of Tesla Motors.

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