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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