Tesla, the electric car company that has fast become the choice of Hollywood celebrities, is about to make its pitch to capture a slice of the Australian market.

The Tesla Model S is being touted as a game-changer for the motor industry, as the company tries to burn off the dowdy image of electric cars.

Its all-electric engine is the brainchild of billionaire Elon Musk. The fortune he made through PayPal lets him pursue his evangelical mission to convert the world to alternative energy cars.

Interest in the company hit top gear this year, with its share price accelerating from just above $30 in 2012 to a peak of $291.

But that prompted analysts to warn the stock was bounding ahead of the reality of its limited production line output, not to mention profitability.

Over the past five years, the company has posted losses of about $900 million, but Tesla said it was on track to produce 35,000 cars this year.

Analysts are forecasting the company will this year post a modest profit in the $80 million to $100 million range as it pushes to increase vehicle production levels and build its so-called battery Gigafactory.

"If we can get smaller batteries, more efficient batteries and more cost-effective batteries, that is only going to help our cause," said Heath Walker, Tesla's Australian spokesman.

"The other thing is we are trying to get larger adoption of electric vehicles across multiple brands. We've actually released our patents for anyone to have a look at to get greater adoption of the technology."

In a note to clients, UBS's David Leitch cautioned that mass-market electric cars were more expensive than fossil-fuelled vehicles, taking more than 10 years for owners to get their money back.

But UBS said at the top end, electric cars could be more attractive.

Tesla faces distance, charging challenges in Australia

In Australia, the Tesla Model S would cost around $117,000 and Tesla plans to halve its price with a smaller sedan version.

Ahead of any dramatic price cut, Tesla has to convince Australian customers its electric cars can travel sizeable distances and be recharged on the road if they run out of power.

"The 500 kilometres provides the range that people use day to day, and then the supercharger network will provide that additional range and we'll start to roll these out," Mr Walker said.

"We've got some announcements coming out in the near future which will outline where these locations will be, so we are actually investing in the infrastructure."

Tesla's presence in Australia consists of a single showroom being built in Sydney. That suits the carmaker, which intends to cut out dealerships - a game-changer for auto industry marketing as well.

But experts warn Tesla will not have a smooth ride straight away in the Australian market.

"I would say Tesla's potential biggest pitfall is other automakers," said Dr Clint Steele, from Swinburne University's department of engineering.

"At the moment I think Tesla should be a little bit worried if established automakers decide to pursue electric seriously.

"But in a few years' time I think the large automakers should actually be worried about Tesla."

Dr Steele said Tesla's advantage over its competitors was the fact it was established solely to make electric cars.

But for now it is still hamstrung by the Model S's six-figure price tag, meaning Tesla's initial customer base in Australia will largely be restricted to those with very deep pockets.