Tesla plans to achieve its first profit this year and launch a cheaper EV in the following 3 or 4 years.

The 10-year-old automaker has managed to accomplish its production target for the Model S, that of 20,000 units annually, and now it will launch the Model X in the second half of 2014, a luxury crossover manufactured on the Model S platform.

“Now, the tough thing for Tesla is to actually make a profit for the first time,” Chief Executive Elon Musk said on Sunday, while accepting an award in Detroit. “That’s, I think, when you start being a real company.”

Musk said that he expects a quarterly profit at the end of this year and analysts predict that Tesla will reach a profit of 6 cents per share during the third quarter of this year. Tesla was founded by Elon Musk in 2010 and the Model S I its second generation vehicles, after the Roadster electric sports car. The base price for the Model S is $60,000 before a federal tax credit. Musk announced that Tesla is working on its third generation vehicle, which will be smaller and will cost between $30,000 and $35,000.


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