How much money can Tesla Motors (NASDAQ:TSLA) make? For investors looking at the stock, that's the question. Given Tesla's sky-high stock price, anyone buying now needs to be convinced that the company can and will generate big profits in coming years.
Tesla CEO Elon Musk said last week that, in time, Tesla's profit margins could be comparable to iconic German sports-car maker Porsche's, long among the best in the business. In this video, Fool.com contributor John Rosevear explains what Musk was getting at -- and looks at what Musk will have to do to get Tesla to Porsche-like levels of profitability.
Fool contributor John Rosevear has no position in any stocks mentioned. Follow him on Twitter at @jrosevear. 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.