DETROIT (CBS SF/AP) – Tesla Motors CEO Elon Musk said he expects the company to turn a profit in five years, after it brings a lower-cost car to market.
Speaking at the Automotive News World Congress in Detroit on Tuesday, Musk said Tesla will start showing a profit when it is selling 500,000 cars per year. He predicted that sales milestone will be reached in 2020, when the Model 3 is in full production. The Model 3 is priced at $35,000, about half the price of Tesla’s Model S.READ MORE: Fatal Crash, Fire Involving Big-Rig Prompts Closure Of Eastbound Richmond-San Rafael Bridge
In addition to developing the Model 3, Tesla’s crossover Model X SUV is expected to hit the market this summer, after several delays. Musk said technical difficulties with the rear doors, which open up instead of out, have delayed the launch.
Tesla is also reengineering its Model S sedan to offer all-wheel drive, and building a $5 billion battery factory in Nevada that is set to begin production in 2017.READ MORE: UPDATE: Lockdown Of Hercules Neighborhood Lockdown Due To Police Activity Lifted
Musk said he wishes more automakers would take a risk on electric cars and that he plans to lead Tesla at least through high-volume production of the Model 3.
Tesla, which was founded in 2003, has never made a full-year profit.
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