Tesla Motors Inc (TSLA): We’ll Be Profitable Soon

While Tesla missed its goal of building 5,000 copies of the Model S in 2012, it is on track to build 20,000 in 2013, Musk said. And the company expects to build 30,000 vehicles in 2014, when its next model – the Model X SUV – is expected to begin production.

The upshot: Still on track
There are still reasons to be concerned about Tesla as an investment. The stock’s valuation remains extremely high, even after Thursday morning’s drop. And the big question facing Tesla – whether there’s truly a sustainable market for luxury electric cars beyond the early adopter crowd – remains unanswered. But there’s no question that the company’s execution on its plan continues to be impressive, production snags notwithstanding.

And while I remain very concerned about potential competitive threats to Tesla’s franchise, none of the global automakers have yet shown an electric car that can compete directly with the Model S’s combination of range, performance, and luxury. Until such a competitor emerges, Tesla will have the market to itself – a market that could soon be a profitable one.

The article Tesla: We’ll Be Profitable Soon originally appeared on Fool.com and is written by John Rosevear.

Fool contributor John Rosevear has no position in any stocks mentioned. Follow him on Twitter at @jrosevear. The Motley Fool recommends Tesla Motors. The Motley Fool owns shares of Tesla Motors.

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