bmek (and others of course) - thank you for your insight.
There is one topic that hasn't resently been touched upon that I believe will be more important than many are thinking as of today: International (i.e. outside of North America) sales.
I believe that the markets in Europe as well as Asia are potentially much greater than many "US-centrics" understand.
Europe:
This is where I am and where I think I have to most insight. The total population of Europe is about twice that of the US (731 million). However, some of these are in poorer and less developed parts of Europa. Also, in Europe the number of cars per person is lower than in the US (America 812 vehicles/1000 people [only topped by Monaco] while in Europe: Germany 634/1000, Norway 578/1000, UK 525/100 for example). The more affluent and developed parts of Europe (Western-Northern) has about 421 million inhabitants (please, no offence to anyone, I included the following countries: Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Netherlands, Norway, Poland, Spain, Sweden, Switzerland, UK) which is more than the US and Canada together at 347 million people. Factors that speak in favor of high EV adoptance: These parts of Europe are technologically mature and densley populated, the eletric grid is robust, especially some parts of Europe have a lot of renewable electricity available, electricity is relatively cheap especially in comparison to petrol or diesel (which is relatively a lot more expensive than in the US). Also traditional ICE cars are generally more expensive here than in North America. A German living next door to the BMW, Audi or Mercedes factory will pay more for his german car than an American would. A Swede pays more for his Volvo than an American, etc. Some governments in Europe are doing more than others to promote EVs, with tax breaks and other stimuli, but in the countries where there is little of this as of today I think a lot may change in the coming years. Europe in general is taking on the responsibility to reduce CO2 emissions more whole-heartedly than the US, IMO, and I would not be surprised if in a few years there will be measures on the EU level to promote EVs (it's all about reaching "critical mass").
Asia
Consider China (this is also true for some of the "Tiger Economies" of south-eastern Asia): Population 1.35 billion people. In 2011 there were 83 motor vehicles per 1000 people. This number has been growing rapidly and China has an explosive growth of middle- and upper class. Let's say that for now just 1% of the population are in a position to even consider buying a car, still that's 13.5 million people who are looking to buy their first ever car. Next year it might be 2%, the year after 3% etc. Anyway, many of these are people do not have the "burden" of much experience with ICE cars. They don't have the brand affiliation og traditions of ICE cars. They are more "native". I believe they will be much more likely to buy an EV. Think of it this way: ff you had never seen a car before, never driven one before, knew nothing about combustion engines or eletric cars and you were presented with one of each, isn't it clear you would pick the EV? The modern chinese don't have to go through the same gradual technological switch we're seeing in the west - there aren't thousands of car dealerships, millions of gas stations (especially in more rural areas) etc. They can just make a quantum leap straight in to the future. They are expanding their electric grid very rapidly anyway. It seems the governement there has got it right - they understand that Chinas future growth will require a lof of management of CO2 emissions and other environmental effects, and they get the fact that if "the average chinese" is going to own his own car in just one or two generations, these cannot be ICEs, since that would be such a huge additional burden with reagards to emmisions. Yes, for now, a lot of electricity is generated in a dirty fashion (coal etc.) but given some time I believe China will be doing a gradual switch to sustainable energy.
To sum up: Don't underestimate demand and future markets outside of North America. As of now Tesla has no real domestic competition, but really no real competition from European or Asian automakers either!
(And those are just the reservations I know about - I have no idea how many are from a result of the EVangelism.)
