2014 Tesla Model S P85 on 2040-cars

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Tesla investor says selling 500,000 EVs in 2020 is totally doable

Tesla Motors may make good on chief Elon Musk's claim of selling a half-million vehicles a year by the end of the decade, Motley Fool says. Of course, the author of the Foolish report in question owns Tesla shares but, now that we've gotten that out of the way, let's check out the logic. Tesla moved almost 22,500 Model S vehicles last year and it was the best-selling plug-in vehicle in the US during the fourth quarter. The company expects to sell about 35,000 this year but the rate of global sales could be double that by the end of the year. From then on out, it's all about economies of scale, with demand mushrooming overseas, costs dropping as a result of the company's slated "gigafactory" and the introduction of the $35,000-ish Model E by 2017. Add it all up, and you can get to 500,000 EVs a year, the Fool says. Late last month, Tesla disclosed details about its gigafactory, saying it will be fed by sun- and wind power, will employ about 6,500 people and will produce those half-million battery packs a year. Between the company and its partners, as much as $5 billion will be invested in the plant, which is slated to be somewhere in the southwestern US (but not in its native California). To put those projected half-million vehicles in perspective, let's look at the unquestioned champion of the green car movement for the past decade, the Toyota Prius and its many Toyota and Lexus gas-electric siblings. It's taken many years to get to this point, but Toyota can now sell about a million hybrids around the world in nine months.

Analyst predicts GM will buy Tesla in 2014

There's little question that Tesla has come at the automotive industry as an outsider. But will it last as an outsider for much longer? Not if you ask Yra Harris of Praxis Trading. According to USA Today, the veteran financial analyst recently predicted on CNBC that General Motors will try to buy Tesla in 2014.
It certainly wouldn't be the first time that GM acquired another automaker. It did just that when it purchased the rights to the Hummer brand from AM General in 1999 and completed its takeover of Saab the year after. But, of course, The General has since divested from both, shutting down its Pontiac and Saturn brands in the process. Daewoo and Oldsmobile are gone too, as is Geo. Chevrolet is to be withdrawn from Europe, and over the past few years, GM has sold its minority stake in Isuzu, Subaru, Suzuki and PSA Peugeot-Citroën as well.
Of course, none of these are dedicated electric carmakers like Tesla is, and the Volt may not be doing as well as Detroit had initially hoped. But does that mean it's ready to start expanding its brand portfolio again? With all due respect to Mr. Harris, somehow we doubt it - especially with Tesla currently enjoying sky-high market valuation. The company's market capitalization stands at over $18 billion - more than 100-plus times its earnings. That would make mounting a Tesla takeover a hugely risky and costly endeavor unless Wall Street tempers its stock value greatly.

Tesla announces aggressive Model S pricing for Chinese market

Most cars exported to China end up with a hugely inflated price tag - often hovering around twice as much as what we'd expect to pay in the United States. Part of that can be chalked up to duties and taxes - which can be quite prohibitive in the People's Republic - but a big part of it comes down to profitability. Tesla, however, is committed to doing things differently.
While some sources were expecting the Model S to carry a price tag in China more than double that of the US model, Tesla has announced a far lower MSRP for the Chinese market than that. Instead it will sell the Model S for 734,000 yuan - equivalent to $121,000 at today's exchange rates.
Now we know what you might be thinking: that's significantly more than the $69,900 Tesla buyers pay in the United States. And you're right. But you have to take into account several factors. For one, the US price includes a $7,500 federal tax credit. For another, Tesla is including the 85 kWh battery pack as standard in China - an option that would already tack on an extra ten grand Stateside. There's shipping costs to take into account (about $3,600 worth, Tesla figures). And last but not least, there's the considerable taxes the Chinese government rakes in on imported cars: $36,700 of it, to be precise.