The Tesla Motors Inc (NASDAQ:TSLA) Model S is not the second coming of the Ford Model T, Matt DeLorenzo, managing editor of Kelley Blue Book, said in a discussion on Bloomberg’s “Street Smart”.
The comment about Tesla Motors Inc (NASDAQ:TSLA) was made by DeLorenzo in the interview which also featured Bloomberg’s Cory Johnson after two owners of the company’s Model S took out a full-page ad in a Silicon Valley newspaper to suggest features for their vehicles.
“It’s a small startup company that’s doing a niche product with limited sales and appeal. I think part of the thing is that Elon [Musk] tried to sell [the Model S]as the second coming of the [Ford] Model T and it really isn’t at this point,” DeLorenzo said.
DeLorenzo’s comment comes after Cory Johnson expressed how the lack of some features in the Model S shows the difficulty of the challenge Tesla Motors Inc has taken.
“This shows you how difficult the task is at Tesla where the features that I have in my 2008 [Honda] Accord are not prevalent in this $95,000 luxury car,” Johnson said.
Furthermore, Johnson said that this car has become “long in the tooth”. He noted that one can see that sales have not rapidly grown for Tesla Motors Inc (NASDAQ:TSLA) when one looks at the inventory numbers reported by the company.
People will have to wonder how big the market is for cars like those made by the company, Johnson said, adding that the company has also yet to show another car and a definite timely for the release of its upcoming cars. According to Johnson, these issues are not baked into the valuation of Tesla Motors Inc (NASDAQ:TSLA)’s stock but could become problems for the company in the future.
Johnson also noted that it is “interesting” to see the balance between leases for the company’s cars and its deliveries. For some, leasing may be a better option, he said, while for some, owning a vehicle outright may be the better deal. These are all issues that the company and potential owners of the company’s cars will have to face in the future, Johnson hinted.
After the full-page ad by the Model S owners, Tesla Motors Inc CEO Elon Musk responded on Twitter saying that the owners are right and that “many of the suggestions will be implemented soon.”
Ad taken out in Palo Alto Daily by two Model S owners is right. Many of the suggestions will be implemented soon. pic.twitter.com/cF43PvJDgQ
— Elon Musk (@elonmusk) August 23, 2014
Tesla Motors Inc (NASDAQ:TSLA) shareholders includes Daniel Benton’s Andor Capital Management which reported 1.25 million shares in the car manufacturer by the end of the second quarter of the year.