Tesla Motors Inc (TSLA): Does Its Win at Mercedes-Benz Matter?

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Tesla’s fate depends upon the continuing popularity of its Model S sedan and the upcoming Model X crossover. Mainstream automakers have not introduced credible competitors in the EV market yet, so Tesla cannot rely on drivetrain sales to other manufacturers to achieve profitability. On the other hand, the Model S has been incredibly successful thus far: On Monday, Tesla announced that deliveries had exceeded its goal for Q1. Tesla thus has an opportunity to become a dominant player in the EV market, which is why I like the company’s long-term chances.

The article Does Tesla’s Win at Mercedes-Benz Matter? originally appeared on Fool.com.

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

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