Owning an SUV without having to pay the fuel costs, or deal with the snide looks of more environmentally minded acquaintances has become something like the American dream. The boom in SUV sales that was heating up a decade ago is over, and for good reason. The cars are bad for the environment, and they’re worse for the wallet in a world with high oil prices.
Why then is the Tesla Model X not being given more attention? Everybody loves the company’s Model S, especially when it goes on fire, and analysts are vibrating with anticipation over the company’s Model 3 $35,000 electric car, but very few people are talking about the kind of revolution that the Tesla Motors Inc (NASDAQ:TSLA) Model X could bring to the road.
Big cars are driving sales
It’s clear from the success of the Model S, and the relatively lackluster performance of the Nissan Leaf and other competitors, that people do not want to compromise when they buy an electric car. The environmentally conscious don’t want to switch from a BMW to a Leaf, but they’ll happily take a Tesla Motors Inc (NASDAQ:TSLA) Model S. Big cars are driving sales of electric vehicles, and that needn’t change for the Model X.
The huge SUV market that exists in America, and the greater demand likely should the environmental and financial pressures of the vehicles be removed, is there to be tapped. Tesla Motors Inc (NASDAQ:TSLA) has shown an ability to leverage great engineering into great marketing. The Tesla Model X could have an incredible impact on the company’s sales, but it seems the Model 3 is getting all of the attention.
Over at Seeking Alpha, Options Calling, wrote an article about this exact phenomenon. The piece pointed to the reported 13,000 reservations of Model X units made before April of this year, alongside comments from Elon Musk to point out the positive effect that the Model X will have on the company’s bottom line.
According to the author, “Investors and analysts would be better off focusing on the Model X – especially since it offers a lot of positivity to investors and a lot of material to brainstorm on for the analysts. The addition of over 12,000 EV’s to Tesla’s market will test the strength of Supercharger stations. With the the Model X rolling of production lines in 2015, investors have a lot to look forward to as Tesla gets to expand its dominance in the EV market.”
Tesla stock keeps on keeping on
Despite the positive movements around the Tesla Motors Inc (NASDAQ:TSLA) Model X release, and the fact that the market appears to be discounting the upside from the vehicle, it’s difficult to justify betting any more on Tesla stock. The company’s shares are valued at an incredibly high level.
Tesla Motors Inc (NASDAQ:TSLA) is a risky company, and its future is unpredictable. Whether or not the value of the firm’s stock continues on its incredible growth trajectory, the company is going to continue to make great cars. The Model X is sure to be another example of that, and both investors and consumers should watch out for it next year.
