No body wants electric cars? Tell Tesla that...
Albeit that it is the sports car that is making a profit for the Electric car makers that profit is being used to invest in the sedan S model.
On August 7th, Silicon Valley-based Tesla Motors announced that they have achieved profitability, something CEO Elon Musk had previously predicted would happen.
In the month of July they had $1 million of earnings on revenue of $20 million.
Tesla has said that it needed a loan to get off the ground - one of the problems in getting that loan was that they had to prove that the viability of the company must be proven - and we can say that this has happened and that low cost loan has now been granted.
I can see this company growing even faster once the S Sedan gets to market because one of the aspects of Tesla cars is that they are going to market the car itself.
An opportunity now has opened for other companies to compete. And that has to be a good thing. Will that opportunity be taken up by the larger manufacturers? That we will have to wait and see, but there is sparks arising from Nissan, Toyota and Honda.
Again, if the American car makers miss this one - it really could be their death knell.
In supply and demand, you make what is demanded and the demand for electric cars is, in fact, growing apace.