How Tesla Model X Will Churn Sales

Tesla needs to increase production of Model X to sustain demand.


Tesla Motors Inc. launch of Model X is getting mixed verdicts from various analysts covering the automotive sector. The auto industry is extremely positive about the car due to its high power and gull wing doors. Investors on the other hand are skeptical since their concern is whether the company can churn in high volumes. Almost 25,000 vehicles of Tesla Motors have been registered are not capable of reach their owners till the latter half of this year which shows that the company has low production related capabilities. This lag was expected by the automotive giant though the company has embraced several delays which have taken more than a year to ensure the successful electric crossover At the same time where many buyers who were saving around $100,000 to purchase Model S since now they cannot wait for an unidentified period since they cannot really wait for another year just to get hands on Model X. so now they are considering to purchase the TSLA sedan that will be available in almost two months. Brad Erickson, who is the analyst at Pacific Crest shared his view where he claimed that the time for the launch of Model S remains unchanged after the launch of Model X. the numbers for Model S production is likely to rise during the fourth trimestral. As per the analyst, the production of Model S can increase by 22% over the coming quarter if they deliver 2,500 Model X electric cars. So if the company wanted to meet its yearly sales target then they will need to sell 17,000 more car units during the fourth quarter. Although numerous analysts have to date been giving positive verdicts on the Model X there are still many who believe that the car is extremely overpriced. The automotive giant has claimed that the price of the Model X is likely to be in between $132,000 and $143,000 along with several extra features. So Model X that has the same features as Model S can be bought for almost $5000 more than Model S pricing. Morgan Stanley analyst Adam Jonas claims that having such prices is likely to make the car expense along with raising the Average Transaction Price (ATP) of Tesla cars. So if the prices of Model X is increased and the production still remains so low then the demand for Model X will hamper and Model S will increase as per estimations.