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Tesla to turn a profit in July, CEO says

By Andrew Heining / June 22, 2009

Not gas: The 100 percent electric Tesla Roadster juices up at an auto show in Paris last month.

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Citing decreased production costs, Tesla CEO Elon Musk has announced that his electric car company stands to make some money next month.

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A Monday morning blog post focused mainly on refuting claims made by ousted company founder Martin Eberhard in a lawsuit he filed against the company earlier this month. But Mr. Musk also tucked in word that material costs for the company's $100,000 Roadster had dropped from $140,000 to $80,000. That, combined with steady production of 20-30 of the Roadsters per week, and the positive reception of its higher-priced Roadster Sport, will allow the company to turn a profit in July, Musk wrote.

The upstart car company has been in the headlines quite a bit recently. In late May it recalled all 345 of the Roadsters in the wild, pledging to make housecalls to correct a manufacturing defect that originated at Lotus, the British carmaker contracted to assemble the cars' frames.

Earlier last month the company received a $50 million shot in the arm from Daimler when the German auto giant bought a 10 percent stake in the California company, which brought the five-year-old company both cash and caché, as Business Week reported.

And of course, Musk made waves when he brought the company's new four-door Model S to David Letterman's show in April, dissing the Chevy Volt (and ruffling GM's feathers) in the process.

Here's a look (in HD) at the Roadster in action.

The Tesla roadster goes 0-60 in four seconds. Follow us on Twitter to keep up!

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