Tesla (NASDAQ:TSLA) believes it can deliver 500,000 vehicles per year by 2020 with the combined help of a lower-cost car, or its third-generation vehicle, and a "gigafactory" that produces lithium-ion batteries at unprecedented scale. With just about 22,500 deliveries of its Model S last year and 35,000 planned for this year, half a million seems like a daunting goal. But is the figure really as daunting as it sounds? After all, the value proposition Tesla has fashioned for its electric cars is incredibly compelling -- and much of this value proposition will carry over to the third-gen model the company is planning to launch in 2017.
As Fool contributor Daniel Sparks explains in the video below, there are more reasons to buy a Tesla beyond the fact that it is greener than its clunky gas-powered alternatives. The Tesla value proposition is simply tough for gas-powered cars to compete with. Considering just how compelling a Tesla vehicle would be at $35,000, 500,000 vehicles per year doesn't sound so crazy anymore.
Even more, electric alternatives to Tesla's vehicles would likely benefit the company by accelerating the advent of electric vehicles as a mass-market option. All said, are Tesla's ambitious aspirations really unrealistic?
In the video below, Daniel explores some of the key selling points for the Model S -- many of which the third-gen vehicle may inherit.
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Daniel Sparks owns shares of Tesla Motors. The Motley Fool recommends Tesla Motors. The Motley Fool owns shares of Tesla Motors. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.