More than a year after Tesla Motors CEO Elon Musk revealed his company’s goal to make the electric car industry viable, the company is still months away from that goal.
The company still has to prove to regulators that its mass-market electric vehicles, or EVs, will be competitive against gas-powered vehicles, according to a new report by Bloomberg New Energy Finance.
That means it still needs to show how much electric cars will be more profitable than conventional gasoline vehicles and that it will be able to compete in the electric vehicle market, which is still dominated by gasoline-powered cars.
Tesla has yet to release a full-year revenue forecast.
Its shares were up 3 percent in afternoon trading on Thursday, trading at $2,895.
The stock closed at $1,962 on Wednesday.
Bloomberg New Energy Futures analyst Michael Greenfield said in a research note that he sees “significant risk” that electric car companies won’t make enough profits to pay off debt, and that the financial crisis will limit the companies ability to make profit.
Tesla shares were down 1.7 percent at $62.72 on Thursday.
The company was up 1.5 percent in the week ended Sept. 26.
Bloomberg also found that electric vehicle companies will have to prove they have an affordable price to pay for their cars, which could be difficult given the high prices of the technology in many places.
Tesla has said it hopes to sell more than 1,000 EVs per year in the U.S., which would require a cost-competitive price.
Bloomberg found that Tesla will have difficulty reaching that goal without a big upgrade to its battery pack.
It also said that the electric vehicles could need more fuel to run, adding that it has to figure out how to pay that cost off without raising prices on consumers.
The report was based on Bloomberg New Solar, a Bloomberg solar-focused report, which analyzes the electric-car industry and the market for batteries.