Tesla Model X Release Date Delayed, Says Analyst
Tesla Motors, a carmaker that specializes on electric car production, may not be releasing its next model at the time it originally announced. The Model X, the company's first SUV design, may not be released during the second fiscal quarter next year, a Morgan Stanley analyst projects.
Adam Jonas, an analyst for investor Morgan Stanley, believes the car manufacturer will not release the Model X during the second quarter but rather during the third, according to the Los Angeles Times. However, this delay may lead to a drop in Tesla's stock price and would allow for more people to buy the company's stock.
"We would use any weakness as an opportunity to increase exposure to the world's most important car company," Jonas explained on Thursday in a report to investors.
Midday on Thursday, the automaker's stock was trading at $227.17.
Jonas adds that a delay could be useful for Tesla because it would give the company time to improve on the Model X as well as gauge the reception of the new Model S versions. Since one of the Model S versions has all-wheel drive, a feature in the X, it would make sense to space out the release of the SUV.
In his report, Jonas gave four reasons why the company may release the Model X later than anticipated.
He first argued car companies launch new cars usually late, because of "the ever-higher level of technical and safety scrutiny facing all auto manufacturers." He then posited a possible delay because there had not been many prototypes on the road. Prototypes allow carmakers to test for further issues before full production.
His other two points also include issues with the spacing between the launches of the Model X and the new Model S as well as gauging the new versions' popularity.
However, the automaker may have already encountered trouble in that area. The San Jose Mercury News reports that some Tesla customers are angry with the company because of the supposed upgrades to the Model S.
Many customers are angry because they were not told of the possibility of ordering a car with either autopilot or all-wheel drive, even though they asked. Some had been encouraged to buy inventory or loaner models instead of a new car, missing out on the new features.
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