NEW YORK ( TheStreet) -- Building on the popularity of the Model S, Telsa Motors (TSLA - Get Report) plans to push the best features of its electric-car design further with its upcoming SUV, the Model X.
The Model X is getting the majority of Tesla's attention, CEO Elon Musk noted on Tesla's second-quarter earnings call. "From a product standpoint, the Model X is our primary focus, obviously at this point," Musk said on the call. "For the most part, our researchers are spending a lot of time personally on the Model X and trying to get the details right. I think there are some things we can do to improve the Model X over the early demonstration prototype that people have seen. I think there is room to make it better."
There's a high likelihood that the Model X could prove extremely popular, Jefferies analyst Elaine Kwei noted earlier this year. "Based on early customer indications, TSLA believes the Model X could be as popular as the Model S (the SUV derivative of a sedan typically sells approximately half the volume)," Kwei wrote in a research note earlier this year. "The current production line could be doubled to 80k-100k units."
Tesla unveiled the prototype design for the upcoming Model X on Feb. 9, 2012.Though Musk noted that the company is trying to make it better than what's already been seen, the early prototype is impressive nonetheless. In a research report earlier this year while upgrading Tesla shares to "buy," Deutsche Bank analyst Dan Galves said there could be exceptionally strong demand for the Model X. "If US demand can be maintained in the 15k-20k range, we see the potential for the Model S to do 40k-50k units per year fairly easily," Galves wrote in the July research report. "Model X could add another 30k." Here are some images that Tesla's posted, showing off the Model X, which is slated to be released sometime next year. On the call, Musk sad he expects there to be a limited volume of Model X units delivered in 2014, with the far majority of them delivered in 2015.
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