A new report shows Tesla’s exponential growth is not slowing down, as the electric car brand gears up to reach a production target of 500,000 vehicles per year.
According to analysts International Strategy and Investment, the Californian company is on track to achieve profit margins of up to 25 percent in coming years.
This would see Tesla overtake segment leaders like Porsche and Land Rover, who each enjoy margins of just over 15 percent.
Tesla's take looks set to grow even beyond that, with the report forecasting margins closer to 30 percent by 2020. This growth became evident recently, when Daimler sold its four percent share in Tesla for a significant A$891 Million.
Part of that projected success for Tesla is in the expectation that automotive battery costs will reduce by up to 30 percent in coming years as new and more efficiently produced technologies debut.
Meanwhile, conventionally-powered competitors face increasingly harsh penalties, making Tesla’s ultra-green and government incentive-loaded electric vehicles even more desirable.
This is of particular consideration in the rapidly growing Chinese market, where authorities are driving an increase in electric vehicle sales, creating a prime opportunity for Tesla.
Tesla's margins can also be attributed, the report claims, to its growing acceptance as a rival to premium brands, drawing in conquest sales from established prestige badges like BMW and Mercedes-Benz.
The brand's full potential in Australia remains unclear however, with buyers of the newly released Model S sedan unable to benefit from the sorts of infrastructure and government incentives offered in other markets.
But, with its enticingly futuristic powertrain and an $85,000 starting price, Tesla will be hoping that the Model S will be a hit in Australia even without the advantages it enjoys in other markets.