Tesla Motors Inc Model X Plagued By Delays

Tesla stockBlomst / Pixabay

While Tesla Motors Inc (NASDAQ:TSLA) has been beating its own financial targets for the last several quarters, there’s one area in which the automaker might be slipping. Eric Loveday of Inside EVs picked up on a few lines from Tesla’s first quarter earnings report which he believes suggest a delay in production and delivery for the first Model X crossover vehicles.

Tesla slips in Model X mention

He pointed to these statements from Tesla Motors Inc (NASDAQ:TSLA)’s quarterly report. The automaker said “extensive development work” on the Model X is currently underway and that it expects to have “production design prototypes” ready to go in the fourth quarter. The automaker also said its efforts are “on track to ramp up production in the spring of 2015.”

According to Inside EVs, Tesla Motors Inc (NASDAQ:TSLA) most likely won’t be delivering a single Model X this year, as the design prototype isn’t expected to be ready until the fourth quarter. The site also notes that in the past, Tesla said it expected the Model X to be in limited production by the end of this year and mass production by April 2015.

Tesla to push Model X deliveries back to March?

Loveday notes that since mass production isn’t expected to begin until April 2015 and then ramp by spring 2015, then this gives a time frame of between March and June. The author states that when automakers change from providing a specific month of when deliveries will be made to a vaguer season reference, that generally suggests that it will happen by the end of that season.

The author then takes us back to 2012 when Tesla Motors Inc (NASDAQ:TSLA) said it would launch the Model X in late 2013. Also the early 2014 deliveries were pushed back again, as Tesla announced in March 2013 that it was pushing production back a year. This time around, the delay appears to be only a few months, but will investors start getting concerned about these multiple delays? So far, they don’t seem worried, as the automaker’s shares rose nearly 2% today.

Based on past promises, Loveday predicts that Tesla Motors Inc (NASDAQ:TSLA) will indeed start limited production on the Model X in the second quarter of 2015 and then slowly ramp up production rates and perhaps not hit full production status until late 2015.

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About the Author

Michelle Jones
Michelle Jones was a television news producer for eight years. She produced the morning news programs for the NBC affiliates in Evansville, Indiana and Huntsville, Alabama and spent a short time at the CBS affiliate in Huntsville. She has experience as a writer and public relations expert for a wide variety of businesses. Michelle has been with ValueWalk since 2012 and is now our editor-in-chief. Email her at Mjones@valuewalk.com.

3 Comments on "Tesla Motors Inc Model X Plagued By Delays"

  1. Using the term “plagued” is hardly appropriate since Tesla Motors has told us why it’s been delayed, and it actually makes sense. For those who plunked down $40,000 for a Signature Model X, it’ll be totally worth it. They will be the first people in the world to own an all-electric SUV with incredible performance, technology, space efficiency, and the ability to road trip. They’ll also have certain exclusivities available only on Signature models. With all seats occupied, the Model X will offer more cargo space than every other SUV, CUV, crossover, or minivan on the market. That’s an accomplishment!

    Why is it that Tesla Motors gets harped on about product delays? It’s not like they can predict the future. No other automaker seems to get that from the media. What’s with the really cool concepts that are showed at the auto shows, but are totally different in production form? or worse, never make it to production? At least Tesla doesn’t toy with the public by coming out with concepts that’ll never be built.

  2. Why, did you put down your 40k? I’m sure people who actually did, have no need to earn interest on the deposit.

  3. Way to take $40,000 deposits from people …. and then fail to deliver the vehicle on time. Kind of an interest free loan, eh?

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