Tesla Motors Inc (NASDAQ:TSLA) Investor Relations Vice President Jeff Evanston was one of several companies which presented at JPMorgan’s automotive conference this week. Analysts Ryan Brinkman and Samik Chatterjee say he touched on a handful of topics that are especially important to investors, especially demand for the Model S sedan.
In addition to demand, he also talked about the automaker’s plans for the Model X and Generation III vehicles.
Demand in Europe could be better or worse, depending…
Tesla Motors Inc (NASDAQ:TSLA) said it still expects to deliver 20,000 Model S sedans annually. Although the automaker said the European market is about the same size of the U.S. market, demand could be higher in Europe.
Evanston noted that automobile buyers in Europe seem to value the ecological aspects and fuel-saving benefits more than U.S. buyers do. As a result, demand for Tesla Motors Inc (NASDAQ:TSLA)’s Model S could be stronger there. However, demand could be less than it is in the U.S. simply because the Model S is a larger car, and European drivers usually prefer smaller vehicles.
When looking at demand around the globe those, Tesla Motors Inc (NASDAQ:TSLA) expects that it will be at least 40,000 or more. The EV automaker said demand in Asia is going to be the most difficult to predict.
Tesla reiterated guidance, released future plans
The company also reiterated its outlook for 21,000 Model S delivers this year and fourth quarter gross margins of 25 percent, not counting Zero Emission Vehicles credits. JPMorgan analysts said although they see that gross margin target as being ambitious, the company has shown solid sequential margin progress so far this year.
Tesla Motors Inc (NASDAQ:TSLA) also reminded investors that it plans to launch the Model X late next year. The vehicle will be the first dual electric motor all-wheel drive vehicle in the world. By 2016 or 2017, the automaker intends to launch its mass market electric vehicle, which it will target a volume of 50,000 to 150,000 units with a gross margin of 25 percent.