Tesla Motors Inc Model X Could Be Delayed Again

Tesla stockBlomst / Pixabay

Tesla Motors Inc (NASDAQ:TSLA)’s Model X crossover has already been delayed several times. Tesla CEO Elon Musk said earlier this month that the company had to postpone its launch by a few months to the third-quarter of 2015. Musk is committed to delivering top-quality vehicles that consumers will love. He pushed back the launch date to increase the validation testing time for Model X.

Stifel cuts 2015 delivery guidance for Tesla

Stifel analyst James Albertine said in a research note that the Model X launch could be delayed once again to the fourth-quarter of 2015. Assuming Q4, 2015 release, Albertine has slashed his Model X delivery guidance for FY2015 from 16,500 units to 2,500 units. The research firm has also lowered its Model S delivery guidance for next year from 57,000 units to 50,000. But Model S estimate reduction was mainly due to “some hair cutting of production” given the disruption related to Model X changeover procedures.

The Palo Alto-based electric vehicle maker is currently testing the Alpha prototype of Model X. The company has started building the Beta prototypes of its crossover. The company’s ability to release Model X on time will depend on several factors such as engineering completion, supplier readiness, and completion of in-house validation testing.

What if Tesla ditches the falcon doors?

Elon Musk has said that the falcon doors pose a few challenges. Earlier this week, Morgan Stanley analyst Adam Jonas said that if Tesla decides to keep “double-hinged doors,” it risks further delaying the release. If the company decides to ditch the falcon doors at this point, the car will have to undergo substantial re-engineering/redesign to make the transition.

Meanwhile, Stifel has reduced its fourth-quarter EPS guidance from $0.75 to $0.35. For FY2015, the research firm has trimmed its EPS estimate from $4.01 to $3.04. Anyway, initial demand for Model X remains robust. Tesla has already received more than 20,000 orders for its forthcoming crossover. Stifel expects current quarter gross margins (excluding ZEV credits) of 25.5%.

Tesla shares fell 3.05% to $249.85 in pre-market trading Wednesday.

For exclusive info on hedge funds and the latest news from value investing world at only a few dollars a month check out ValueWalk Premium right here.

Multiple people interested? Check out our new corporate plan right here (We are currently offering a major discount)






About the Author

Sheeraz Raza
Sheeraz is our COO (Chief - Operations), his primary duty is curating and editing of ValueWalk. He is main reason behind the rapid growth of the business. Sheeraz previously ran a taxation firm. He is an expert in technology, he has over 5.5 years of design, development and roll-out experience for SEO and SEM. - Email: sraza(at)valuewalk.com

Be the first to comment on "Tesla Motors Inc Model X Could Be Delayed Again"

Leave a comment