Fans of electric vehicles are currently waiting with baited breath for the release of the Tesla Model X. The Tesla Model X is a full-size crossover utility vehicle that has suffered from continual delays, but for which the first deliveries of the vehicle are expected to take place in September. Tesla CEO Elon Musk has frequently boasted about the capabilities of this vehicle, and it is probably the most hotly anticipated electric car in history.
Tesla confirms September release date
With fans of Tesla having pre-ordered this vehicle in large numbers, any further delay would be a huge disappointment. So it is excellent news for consumers of the forthcoming Model X electric vehicle that Tesla has seemingly confirmed that it will, in fact, actually launch in September as intended.
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It is perhaps a little generous to describe this ‘as intended’, as Tesla has perpetually pushed back the release date of the Model X before settling on next month. But in a letter to shareholders that was published on Wednesday, Tesla has confirmed that this vehicle will indeed launch in September. With only eight months to this purported release date it is surely far too late for Tesla to once again turn back on its schedule, so perhaps we can finally expect to see the Model X on the road next month.
According to the letter, Tesla is currently working on executing final engineering and testing work for the Model X. One shouldn’t underestimate the amount of engineering and testing that goes into producing an such an electric vehicle, and Tesla is clearly ensuring that preparations for the release of this vehicle are fastidious.
Although the delay of the Model X has been extremely frustrating for fans of the electric car niche, it is perhaps understandable that Tesla is taking an attitude of perfectionism towards this release. The rise of Tesla has been little short of stratospheric, but the last couple of years have seen Tesla fortunes fluctuating somewhat.
Model X key release for Tesla
With the Tesla share price under pressure, doubts about the long-term growth of the electric car marketplace, and potential rivalry coming from the likes of Apple and other mainstream auto manufacturers, there is no doubt that the Model X is an extremely important vehicle in the future of Tesla. Musk has staked a lot of the reputation of the company on this vehicle by promoting it so heavily, and expectations for a truly outstanding Model X release have unquestionably been heightened.
This has helped Tesla achieve an impressive quotient of pre-orders, but it also puts pressure on the corporation to deliver something outstanding when the Model X is released. Meanwhile, the company states in its letter to shareholders that it is currently enabling new manufacturing equipment in order to meet these orders, and finalizing arrangements with supply chain operators.
One gets some idea of the complexity of producing an electric car from the statement that Tesla is currently operating more than 500 robots in its factories as it finely tunes and validates the production processes related to the Model X. One should never underestimate the complexity of producing a roadworthy vehicle, let alone an electric car that is intended to be the most impressive example of this manufacturing field in the history of the niche.
Despite the successes of the visionary electric car manufacturer, Tesla is currently rated as the 14th most shorted stock on the NASDAQ 100. This is indicative of the challenges facing Tesla in the coming years, and it is obvious that a less than successful Model X release would be little short of disastrous for the corporation.
It has been reported in recent months that Tesla has been eating into its cash reserves as it develops the forthcoming Model X, and the company is unquestionably looking for a large capital return when this vehicle is released. So all the these factors help explain why this has been a delayed vehicle from Tesla, but now the proof will be in recording next month when the Model X finally hits the streets.
Kallo expects Model X success
Meanwhile, not all city analysts agree that the outlook for Tesla is gloomy. In a report published Thursday, Baird analyst Ben Kallo suggested that Tesla stock will perform superbly in the coming years, and that the Model X will be an outstanding success for the corporation. Tesla stock is currently trading at just under $250, but Kallo believes that in the foreseeable future a price target of $335 is achievable.
Kallo stated that Tesla’s long-term growth remained “intact” and suggested that buying the stock ahead of the release of the Model X would be a sound investment strategy. Kallo expects the Model X to be a strong performer, with the management of Tesla having confirmed that the initial Model X deliveries are on track for the results predicted by the corporation.
According to Tesla itself, the company has already received 24,000 reservations for the Model X, which suggests that it will be considerably more successful than any previous Tesla vehicle. By comparison, the popular Model S vehicle had received approximately half the number of reservations that the Model X has fielded during the same point in the production schedule.
This is to be expected considering the stronger market presence of the Tesla brand today than it occupied back in 2012 when the Model S was released. But the doubling in pre-orders is certainly encouraging for the corporation. With the supercharger network of Tesla having also doubled, and an SUV seemingly far more appealing and practical than the Model S sedan, there is certainly considerable evidence pointing to a successful product for the electric car manufacturer.
Tesla will be banking on extremely strong Model X release, as it continues to ready the Model 3 behind closed doors. It seems clear that the Model X is about to become the most popular electric vehicle in history.