(MENAFN- The Peninsula) Bloomberg
San Francisco: While Tesla Inc's Model S has been a hit and thousands lined up to order the upcoming Model 3 sedan, the Model X sport utility vehicle hasn't met the chief executive officer's expectations. Model X deliveries have yet to keep pace with the Model S, as Musk predicted, and US registrations of the SUV have slipped the last two quarters, according to IHS Markit.
Musk has chalked up challenges with the Model X to making the vehicle too complicated. Features including the double-hinged falcon-wing doors have constrained production and contributed to a costly $82,500 starting price. For Tesla, the lack of cheaper and easier to produce configurations has meant missing out on roaring demand amid America's SUV boom.
'Luxury SUVs are really hot right now, and the Model X should have been a big hit and broadened Tesla's audience, said Michelle Krebs, an analyst with Autotrader.com. 'You don't hear a lot of buzz about the Model X, and when you do, it's the negative stuff.
Musk said on an earnings call this month that there's enough demand for Tesla to sell 100,000 Model S sedans and Model X SUVs combined this year. Tesla worked through a backlog of Model X orders from overseas markets and built up supply of the SUVs in its test-drive fleet during the first quarter, both of which impacted US registrations.
Musk has been candid about challenges with the SUV's doors and independently operable second-row seats. Several features were difficult to engineer and dependent, in part, on multiple components and suppliers. When the carmaker fell short of its first quarter 2016 sales forecast, it blamed 'hubris in adding far too much new technology. 'Model X became kind of like a technology bandwagon of every cool thing we could imagine all at once, Musk said during an earnings call earlier this month. 'That is a terrible strategy.
MENAFN2705201700630000ID1095515818
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.