“We’d be disappointed if the Model X did not sweep every major Car of the Year award on offer the automotive media”
Tesla Motors Inc achieved a big hit with its Model S saloon, but according to investment bank Morgan Stanley, its next model, an SUV, will do even better.
Tesla’s SUV Could Outshine The Model S
Tesla has achieved much with the four-door $70,000 plus Model S, sweeping up awards and generally wowing the motoring press. Tesla built 8,763 Model S cars in the second quarter, and expects to deliver about 35,000 this year.
Tesla expects to build more than 60,000 vehicles in 2015. The next vehicle on the launch pad is the Model X, and, according to Morgan Stanley’s Adam Jonas, this will feast on the premium SUV market.
“Despite the success of the Model S, we think Model X has the potential to be far more successful and a much better value. Some in the market have described Tesla as a ‘one hit wonder’ with the Model S. We expect the Model X will put that to rest very, very quickly,” Jonas said.
“Tesla is trying very hard to contain its excitement ahead of the Model X launch, but this is increasingly difficult to do. We’d be disappointed if the Model X did not sweep every major Car of the Year award on offer in the automotive media,” Jonas said.
Jonas reckons that the Model X will overtake the S in volume by 2018. Tesla has a target of reaching volume of 100,000 by the end of 2015.
Spectacular
Tesla shares have raced ahead on stock exchanges. Over the past 12 months the shares have risen steadily from about $175 to $260 after the initial spectacular rise. Morgan Stanley tells clients the shares could rise to $320 each. After the Model X, Tesla plans to market a smaller, cheaper vehicle, Gen 3. Morgan Stanley says under the most favourable circumstances, the Model S and X could reach annual volume of 150,000 by 2020. Gen 3 could hit 220,000 in 2020, and 775,000 by 2028.
No comments yet.