"In a report last month, Lux Research predicted that Tesla would be able to sell only 240,000 vehicles a year by 2020, less than half the 500,000 it has forecast. That would leave it with substantial overcapacity in battery production that would not be made up for in sales to other car companies or for other battery applications, the research firm said.
To reduce the risk, Tesla has said that it is also targeting the market for large-scale electricity storage systems used by power companies, where low unit costs are also a key competitive factor.”
"investment pundits think that Tesla Motors is on the verge of achieving something big: A battery cheap enough to make electric vehicles cost-competitive with conventional cars.
Daniel Sparks at Motley Fool is reporting that the company is on the right track towards developing a battery that costs only $100 per kilowatt-hour — a cost widely believed to be the threshold where electric vehicles can finally be cost-competitive.”