Tesla Motors Inc (TSLA)’s Model X To Be Better Than Model S: Morgan Stanley (MS)


Tesla Motors Inc (NASDAQ:TSLA) new Model X is heating up the expectations and according to Morgan Stanley (NYSE:MS) this model will beat the Model S in sales and it will also reign in the Premium SUV segment, as the Los Angeles Times reported.

According to the report by Morgan Stanley (NYSE:MS), cited by LA Times, the Model X, which is expected to be launched in production in the second quarter of the next year will be a better car and would shoot up the sales of Tesla Motors Inc (NASDAQ:TSLA).  The report also states that the new model crossover SUV will sweep all the awards in its section.

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All these are just predictions and Morgan Stanley has not seen the Model X or driven it. All these are made up on the back of some palpable events that happened so far. The main factors for this prediction are that Tesla Motors Inc (NASDAQ:TSLA) has surplus resources and money to invest in the new model than the Model S and it is also trying to get a model that would be more perfect than the sedan and will have less faults that will have to be fixed.

The manufacturer’s suggested retail price of the Model X might be 5 – 10 % higher than the Model S, which starts at $71,000. However its features will make it a better car and will be more successful on the market, according to Morgan Stanley (NYSE:MS). They also liked the “Falcon doors” on the Model X. The report also said that the SUV can outsell the S by the end of 2016.

However, Morgan Stanley (NYSE:MS) also noted that the launch was being delayed by 6 – 9 months, while the prototypes have not been tested yet. They said that Tesla Motors Inc (NASDAQ:TSLA) would start testing in a few days.

Not just this, Elon Musk, the CEO of Tesla Motors Inc (NASDAQ:TSLA) was having some lighter moments in the shareholders meeting last week where he said “There are no cars available for a test drive,” as quoted by the LA Times. He was also confident that the company won’t face a demand issue with the Model X.

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