"We’ve actually sold out of all of next year’s production in advance," Tesla CEO Elon Musk told Bloomberg’s Betty Liu in a recent interview. The Model S is the "Family Sedan" that is much more affordable than the Tesla Roadster. Priced at around $50,000 the four-door is going to have a production run of about 1,800 vehicles.
The Tesla S is not meant to be a mass production vehicle, yet. Electric vehicles currently lack the infrastructure to go mainstream, but each year the cars get better and better. Currently the Tesla S offer amazing value in terms of look, style, features and range when compared with any other all electric sedan on the market. While there are vehicles with better range, they aren’t as room, and they aren’t as easy on the eyes.
Tesla has done an amazing job creating an affordable luxury sedan that plugs in.
Tesla’s success is leading to an anticipated profit in the year 2013. The increase in demand, and the decrease in cost to build has lead Tesla to the point that as Tesla launches a full line of vehicles that they will be able to produce enough cars to leverage economies of scale to generate profits.
Musk believes that in the near future the majority of new cars sold will be electric, and Tesla will have a strong foot hold in this new automotive market. The limits of Electric in cold weather environments, and the inability to make the drive from SF to LA in an electric makes me hesitant to agree, but I think some of those challenges will be solvable in the coming decade.