Tesla Model X Will Make The Tesla Model S Look Like Chopped Liver, Morgan Stanley Analyst Says

International Business Times

Published Aug 06, 2014 01:27PM ET

Tesla Model X Will Make The Tesla Model S Look Like Chopped Liver, Morgan Stanley Analyst Says

By Meagan Clark - Tesla Motors’s electric crossover aport utility Model X vehicle will make a huge splash in the automobile market next year, with potential to be far more successful at a much better value than the Tesla Model S luxury electric sedan, Morgan Stanley analyst Adam Jonas said in a research note Wednesday.

The Tesla Model X will make the Model S luxury electric sedan look like chopped liver and silence comments that Tesla Nasdaq:TSLA is a “one hit wonder” with the Model S, he said.

Tesla’s Model S and Model X cars are the only two electric cars in the luxury segment. The Model S debuted in late 2012 and the Model X is due out next spring. A third-generation Tesla car, the Model 3, will reach for a wider buyership at around $35,000 by 2017, according to the company. The Tesla Model S sells for about $71,000 in the U.S.

“We’d be disappointed if the Model X did not sweep every major Car of the Year award on offer by the automotive media,” Jonas said. Tesla Motors has learned many lessons since launching the Model S and has far greater financial and technical resources now that it’s pouring into the Tesla Model X line, he said.

“Additionally, many key suppliers who refused to work with Tesla at the time of the Model S will participate in commercializing the Tesla Model X,” Jonas said. “It is in Tesla’s interest to under-sell expectations of the Model X’s capabilities while it is still in the early stages of the global roll-out of the Model S."