Tesla Model X to outsell Model S, 'devour' premium SUV market
Thu, 14 Aug 2014It's still about a year away, but the arrival of the Tesla Model X is already expected to have a major impact on the premium SUV market. According to Morgan Stanley, the all-electric Model X, Tesla's third model following the Roadster and Model S sedan, is "ready to feast" on the current crop of high-end SUVs.
Not only does Morgan Stanley expect the Model X to do well against other vehicles in its class, it's expecting the new SUV to even outpace the critically acclaimed Model S, with the X accounting for a larger share of sales by the end of 2016. The sales boost provided by the Model X should also contribute to a healthy jump in Tesla's current $250 stock price. MS is expecting Tesla shares to hit about $320, and has called it a "top pick in US autos," according to The Los Angeles Times.
As for how Morgan Stanley is expecting such strong results for a car that literally no one outside of Tesla has driven, it cites Elon Musk's company's increased access to both money and technological expertise relative to the Model S project. The firm also points to Tesla's larger investments in the Model X project so far.
By Brandon Turkus
See also: Tesla Model S proves troublesome for Consumer Reports, Silly dyno, that Tesla doesn't have 2,000 lb-ft of torque, Recharge Wrap-up: Formula E car swap video, Lyft adds carpooling, new Tesla book.