Tesla Motors Inc (TSLA) Finally Swings to a Profit

Competition

The electric vehicle and hybrid space is obviously getting more crowded, as more and more manufactures have wizened up to the importance of this type of offering. The price tag of the Model S may be one of the biggest hurdles for consumers. Whereas a Volt can be had for around $40,000, and the Prius Plug-In starts at $32,000, you won’t get a new Model S for less than $70,000. On the other hand, the Model S is said to have triple the range of competitors at about 265 miles, as well as luxury interior and large passenger capacity. The two hybrid competitors mentioned here don’t have much full-electric range to speak of, both topping at around 40 miles. In terms of fully electric competition, the world’s bestselling EV’s are the Nissan Leaf, with nearly 50,000 units sold in 2012, and the Mitsubishi UFJ Financial Group Inc (ADR) (NYSE:MTU) i-MiEV, with around 27,000 units sold.

The bottom line

With Tesla Motors Inc (NASDAQ:TSLA)’s first quarterly profit since becoming a publicly traded company, it appears as if the company has turned a corner. This is not only good news for Tesla Motors Inc (NASDAQ:TSLA), but also for the viability of fully electric cars as an alternative to traditional gasoline powered vehicles. While the Model S is clearly an up-market product, reflected in the hefty price tag, the increased interest in the vehicle is encouraging. In any case, the new financing program should make it easier for consumers to access a Model S. It will be very interesting to see how this company performs over the rest of the year.

Daniel James has no position in any stocks mentioned. The Motley Fool recommends General Motors and Tesla Motors. The Motley Fool owns shares of Tesla Motors.