How Tesla Has Already Built A $40,000 Electric Sedan

Jul. 18, 2013 8:08 AM ETTesla, Inc. (TSLA)262 Comments
Cody Pedro profile picture
Cody Pedro

Today, the 60 kWh Model S can be purchased for $71,070 before any federal tax credit, and after a $7,500 tax credit, the car can be purchased for $63,570. Since the valuation of Tesla Motors (NASDAQ:TSLA) is highly sensitive to its future demand, short sellers claim that the market for a $63,570 sedan is simply too little to justify its near $15 billion market cap. However, if after the federal tax credit, the price of the Model S was reduced from $63,570 to $39,570 without Tesla losing one penny of profitability, would short sellers still claim the market is too small to justify a $15 billion market cap? I think not! A $39,570 Model S would be priced 6.2% below the 2013 Audi A6 that sells for $42,200. In 2012, Audi produced approximately 284,888 A6 models worldwide. With the extra recognition and more advanced technology, the Model S would likely sell far more than its Audi competitor. Here is a list of recognitions that the Model S has received.

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Cody Pedro profile picture
I have successfully passed the CFA level I Exam and I am a graduate student in Economics who has had extensive course work in finance, and mathematics. I have enjoyed watching the stock market since I was twelve years old. Always looking for new opportunities. You can reach me at

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