The release of the Model X for Tesla will unquestionably be a vital moment for the company. This long-awaited and hotly anticipated SUV has been delayed for some considerable time owing to technical issues. The electric car manufacturer has evidently wanted to get this flagship vehicle absolutely right before releasing it, and this has certainly led to some chagrin, as release date after release date was disappointingly pushed back.
Tesla Model X delays
However, it won’t be much longer until fans of Tesla can finally get their hands on the Model X series. The inimitable founder and CEO of Tesla, Elon Musk, has already stated that he expects this high-performance SUV to blow away the competition when it finally hits the roads. This is quite a bold pronouncement, particularly as Tesla has already disappointed both consumers and the critical community by pushing back the release date of the vehicle. Evidently, Musk is extremely confident based on how the vehicle has performed in tests.
Perhaps some of this bullish attitude has come from the strong links between Tesla and Apple. No-one is quite sure what Apple’s interest in the electric car manufacturer is, with numerous possible motivations being floated. It was seriously suggested that Apple had an interest in buying out Tesla at one time, and although the consumer electronics giant has denied this, the murmurings that Apple is interested in investing in Tesla continue unabated.
Additionally, it has been strongly suggested that Apple is developing its own electric car internally. The light of this particular fire was further flamed by the frequent reports that Apple had poached numerous members of staff from the electric car manufacturer. But Tesla seems relatively relaxed about this prospect, firstly pointing to the fact that it has also recruited strongly from Apple.
And when recently questioned about this issue, Musk stated that he actively welcomes interest from Apple in the electric car niche. It is believed that he perceives that an Apple involvement in electric cars will enable the niche to expand significantly, enabling Tesla to get a potentially smaller slice of a much weightier cake. So although not all has gone entirely according to plan with the release of the Tesla Model X, it is fairly reasonable to assert that it is being released into a fertile climate for the electric car in general.
Tesla Model X prospects
So Tesla has placed a great deal faith in the Model X, with the hope that it can reignite the hopes of the company. Tesla has come an awful long way in a relatively short period of time, but the fact remains that the electric car marketplace is not as established as some industrial bases. This has ensured that Tesla’s ascent has not been entirely serene. The share price of the corporation has fluctuated over the last 12 months, but as investors, analysts and the city appear united in their appraisal of the Model X, Tesla’s share price has bounced back somewhat in the last weeks and months.
Nonetheless, Tesla remains a divisive stock. Many analysts believe that Tesla is overvalued, while others think quite the opposite. For example, James Albertine of Stifel Nicolaus recently suggested that now is a good time to buy Tesla stock, outlining what he believed to be an entirely reasonable $400 price target. Shares of Tesla are currently trading at around the $250 mark, which obviously means that there would be a 70% percent increase in the Tesla share price in the foreseeable future should this prognosis be accurate.
In line with this estimate, Albertine is betting that the more affordable Model X will be a huge success for Tesla. Albertine recently asserted that the all-wheel-drive crossover SUV will rapidly shift 4,500 units, and that the customer awareness which Tesla has achieved over the last three years will contribute significantly to the success of this vehicle.
Albertine heaps those sentiments upon Tesla as he considers that the strong investment that the corporation has made in future technology, coupled with its improved and now outstanding production capabilities, bode very well for the corporation. Additionally, Albertine is impressed with the investment that Tesla has made in alternative industries, and envisages a situation in which Tesla is established as an energy storage company in addition to being a mainstream auto manufacturer.
Tesla to enter storage sector
With regard to the last of these concepts, this is making reference to the recent announcement of Tesla that it will enter the energy storage sector with a home battery product. This ‘Powerwall’ offering from Tesla will be fuelled via solar panels, and it will be possible to equip this new innovation in order to power homes at night, while the product will also provide an extremely useful source of backup electricity.
While Albertine is bullish and enthusiastic about the prospects of Tesla, it is also important to understand and emphasize that he is taking very much a long-term view on the subject. The fundamentals which will lead to an increase in Tesla stock are based on a 5 to 7 year strategy, and it certainly seems based on this prognosis that Tesla stock is one to hold rather than look for short-term trading gains.
Nonetheless, Albertine predicts that Tesla will reach 1-4 million households globally by the end of the decade, and that coupled with strong sales from the Model X that this will lead to significant growth in the stock price of the corporation. Tesla also has the forthcoming Model 3 to look forward to, as it continues to make a big splash in a marketplace traditionally dominated by gas guzzling vehicles.
Tesla Model X interior video emerges
As Tesla looks forward to a bright future, video has emerged online providing the first interior shots of a Tesla Model X vehicle. Although this is not the clearest film in the world, it will certainly further whet appetite ahead of what is arguably the biggest electric car release in history thus far.