Tesla Motors Inc (NASDAQ:TSLA) has rejected recent reports around the slowing Model S demand. Barclays said in a research note earlier this week that the Model S demand in the U.S. has plateaued. But the electric vehicle maker said during the investor meetings organized by Goldman Sachs that the demand is still strong. Goldman Sachs has a Neutral rating on the stock with a $200 price target.
Tesla trying to reduce wait time in international markets
Tesla Motors Inc (NASDAQ:TSLA) reiterated that it has done very little on the promotional front to boost growth. The Elon Musk-led company revealed in its 10-K filing last month that it spent just $9 million on advertising and promotional activities in 2013. The company is focused on reducing the waiting times globally. Therefore, it won’t have plenty of supply to sell in the U.S. at this time.
Tesla Motors Inc (NASDAQ:TSLA) said its second production line will be launched this year. It will be capable of building both Model S and Model X. The new line will increase the production rate from the current 700 units a week to 1000 units. So, the two lines will take total annual production above 50K. Tesla expects to deliver 6,400 vehicles during the first quarter. Barclays forecasts 6,600 deliveries. The electric vehicle maker said yesterday that it will start delivering vehicles in China this month.
Tesla says Gen III will require a third production line
Tesla Motors Inc (NASDAQ:TSLA) said it expects the Model X demand to match the Model S. Reports suggest that the company has already received more than 12,000 pre-orders for Model X, which is set to be launched in the spring of 2015. The company’s previous statements suggest that it anticipates long-term Model S demand to be around 40K, which means around 80K for both models.
The San Francisco-based company said its mass market car Gen III will require a third production line, and deliveries are expected to start in 2017. Tesla Motors Inc (NASDAQ:TSLA) said the Gen III car will have a base price of $35,000, but total ASP including options would run to $45,000-$50,000.
Tesla Motors Inc (NASDAQ:TSLA) shares plunged 2.17% to $199.76 in the early trading session on Friday.