Can the Tesla Model S be profitable at $57,400? Not according to these calculations…

Filed under: Hybrids/Alternative, Sedans/Saloons, Green, Plants/Manufacturing

Tesla Model S – Click above for high-res image gallery

Tesla Motors’ charismatic frontman, Elon Musk, will be showing up on the Late Show with David Letterman tonight to dazzle America’s TV audience with his gorgeous all-electric sedan. Tesla says that when the Model S goes on sale at an undefined point in the future, the cost for the base model will be just under ,000 – ,900 to be exact – after a ,500 government tax break. Business Insider has a word for that: Horsefeathers.

BI teamed up with Mark Boyadjis, an auto analyst at iSuppli, and they did some math based on actual numbers used in the auto industry and a lot of educated guesses. The result? They didn’t exactly find a lot of room for profit if the car sells for ,400. Their math is based on at least one error – they say the replacement battery for the Roadster is ,000, but that’s a carry-over mistake from Edmunds – it’s actually ,000. Still, that’s the equivalent to the base price of an entire “near luxury” sedan – one that conventional automakers have trouble making margins on. That big, sexy touchscreen? Estimated to cost ,000. Add everything from chassis and body panel costs to in distribution, marketing, further engineering, and lest we forget – building a factory, and Musk’s price target starts to look more and more implausible.

BI has a good point here – Tesla needs to be careful with their pricing predictions. The ambitious startup made big financial mistakes when pricing the original Roadster – which didn’t make everyone happy – and there’s not a lot of room left to goof up a second time.

Gallery: Tesla Model S