Tesla to turn a profit in July, CEO says

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

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

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!

of stories this month > Get unlimited stories
You've read  of  free articles. Subscribe to continue.

Unlimited digital access $11/month.

Get unlimited Monitor journalism.