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What’s Next for Tesla Motors (NASDAQ: TSLA)?

Elon Musk Reveals Big Plans for the Future

Tesla Motors (NASDAQ: TSLA) surprised everyone when the company, previously known for its expensive electric sports car called the Roadster, came out with the design for its electric sedan, the Model S.

The Model S, in its most basic form, was half the price of the Roadster at $49,900, though limited edition options could bring it up above $100,000.

Perhaps the most exciting thing about the car was the fact that it had a range of 480 miles – one of the best to date.

And CEO Elon Musk says it will soon do even more than that:

“I think it can be even better. The Tesla Supercharger, to be unveiled in a few months, will do a lot more than anyone expects.”

Though this cryptic statement hasn’t completely been deciphered, it’s possible that he’s referring to the fact that this Supercharger will recharge a Model S to a 300-mile capacity in as little as an hour. He had also previously indicated that there might be solar panels involved in the Supercharger system.

But now Elon Musk is surprising everyone again. At his shareholders meeting in June, Musk revealed that the company, which continues to see losses as it manufactures its electric vehicle, will be profitable by next year.

When critics jumped at this bold claim, Musk assured them that all the company needs to do is meet sales expectations.

Of course, it may even be simpler than that. The company currently has over 12,000 orders for the Model S, but the break-even point is 8,000 sales. It already has enough orders to earn a positive cash flow.

Even if sales don’t reach the expected 25,000 level Tesla has predicted between 2012 and 2013, it’s guaranteed to begin earning a profit.


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