NEW YORK (June 22, 2009)--Tesla's CEO says that the material cost of he electric car company's Roadster has fallen to about $80,000, down from a previous material cost of $140,000.

The car has a starting sticker price of about $101,500.

Tesla Motors CEO Elon Musk made the comments in a blog post Monday.

He said says the drop in costs is a result of cheaper battery packs and supply chain improvements.

In addition, Musk says the San Carlos, Calif.-based company expects to become profitable next month, thanks to the lower costs and steady third-quarter production.