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.
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.