Tesla Motors Inc (NASDAQ:TSLA) posted third-quarter profits that pounded the estimates. The company has also focused its attention on the mass market where it is expected to offer electric cars at a price range of $30,000-$35,000. However, on CNBC, Theodore O’Neill of Ascendiant Capital Markets discussed the next product in line – Model X. He also talked about direct sales, which is the model that Tesla has been using to sell its flagship car, Model S.
The Model X was originally scheduled for the release in the first-quarter of 2015. However, it has been pushed out, and that seems to bother nobody. However, according to O’Neill, delaying product release is not something unusual at Tesla Motors Inc (NASDAQ:TSLA). He cited that even with Model S, the company pushed it back until they were able to get everything right, especially the on its interior.
“If they are going to push out the (Model) X a little bit longer to make sure it is alright inside, I’m totally fine with that. Not an issue at all. The customers are still there […]. But they do need to make sure that it is alright on the inside,” said O’Neill.
Tesla Motors Inc (NASDAQ:TSLA) is getting good news from its flagship Model S. The company recently said the care received high safety rating in Europe. It also holds the same in the U.S., a reputation that only a few cars have attained.
O’Neill commented that the delayed release of Model X is not likely to move the needle in Tesla’s financial model.
“[….] That is because the company has a multibillion dollar market to address, and Model X is just another billion dollar car[…],” stated O’Neill.
As for the mass market agenda, O’Neill recognized that Tesla Motors Inc (NASDAQ:TSLA) needed to get its Gigafactory is up and running. He said the facility will likely be running sometime in 2016, which means the mass market-targeted car can be expected in 2017.
As to whether Tesla Motors Inc (NASDAQ:TSLA) should consider working with dealers as the case with the other car makers, O’Neil said wholesale selling was not important for the company. He said the company was already selling retail, which disqualifies the need for the wholesale model.
Citadel Investment Group, managed by Ken Griffin hold around 46.5 million shares of Tesla Motors Inc (NASDAQ:TSLA).