It is interesting to watch both companies run by Elon Musk: SpaceX and Tesla. Both companies step into fields which were so far not run by big businesses. What sets his ventures apart from others, is that they are executed along plans which not only span many years but most importantly on a clear path of technical evolution. When SpaceX went from Falcon1 to Falcon9 and soon to Falcon9 Heavy they followed a clear technical concept, where on each iteration main parts of the previous step were reused, keeping the technological and financial risks in control. What is so faszinating is, that that this progression was clearly planned from the start for a long time and range of products.
Tesla is built on the same principle. They started with the roadster. No one expected it to generate multi-billion dollar revenue. But if you multiply its price with the sold number of cars, some nice revenue comes together. By price and concept it was targeted to a small group of wealthy enthusiasts. The roadster created a lot of awareness in the media. Now the technology and the price for batteries has improved vs. the time the roadster has been designed. Also now Tesla has many years of more experience with the technology and production of electrical cars. So the second step in the chain of products is a car which is targeted to a broader audience, by concept and price. The S will be the first model intended to reach higher production numbers. Consequently, in a few years we might expect another Tesla car, once again cheaper and more geared to the mass market, based on the revenue and experiences obtained with the model S.