[jyl]

I am uncertain about Tesla's ability to compete in $40K mass market cars (3rd gen car, after model X).

I don't understand why anyone thinks their success in the ultra high end niche is not "real". The model S is selling well, and would do so even without a $10K tax benefit (it doesn't get that in most US states, in Europe, in China, and yet it is selling well everywhere). The company has repaid its US government loans. Owners pay the standard rates for electricity. The amount of subsidy in each model S is quite small.

The fuel or maintenance savings from buying a model S instead of the competing BMW, Audi or Mercedes is irrelevant. People buy the car because it is cool, luxurious, high status, trendy, high performance. Which is how any $90K car is sold.

The model X (cross over utility vehicle) will be interesting. It isn't really a luxury CUV you can take to your ski house in Aspen, since the falcon wing doors preclude ski or bike racks on the roof. But it looks like a stylish, super cool drive for the richer sort of soccer mom. If I were to get a Tesla, I'd be more interested in the X than the S.