Report: Analysts Expect Tesla Model X to “Devour” Premium SUV Market
Store Representatives Reportedly “Anti-Selling” Future Electric Crossover
Just a few years on the market, the Tesla Model S luxury sedan is already selling as well or better than such established rivals as the Mercedes-Benz S-Class, Audi A8, and BMW 7 Series. The premium electric luxury sedan is now just barely rolling out to overseas markets such as the U.K., China, and Japan. But the success of the Model S is predicted to be just a drop in the bucket compared to the volume and popularity forecast for the company’s upcoming Model X crossover. Such are the findings of a Morgan Stanley analyst, according to the Los Angeles Times.
Some of the key assumptions of the report are a higher transactional price than on the Model S sedan and projections that the Model X will outsell the sedan by 2016. The report also notes that more time and R&D resources were put into the development of the Model X than the Model S sedan, which should result in higher quality and fewer problems. Tesla Motors CEO Elon Musk is reportedly directing representatives to persuade customers inquiring about the Model X to consider the current Model S sedan, with its available rear-facing child seats, as an appropriate family vehicle.
The premium SUV market has not traditionally been about economy and efficiency, as evidenced by the popularity of such models as the Range Rover and Cadillac Escalade. However, even these guzzling behemoths are becoming more fuel-efficient, and diesel-powered models from Porsche, BMW, Audi and Mercedes-Benz proving surprisingly popular with buyers. Will luxury SUV buyers be ready to dump the pump in favor of a plug? Time will tell.
Source: Los Angeles Times