This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Explaining Tesla's Model X Delay

NEW YORK (TheStreet) -- The Tesla (TSLA - Get Report) Model X was originally scheduled to enter production in December 2013. The purpose of this article is to discuss why it was delayed by one year, and whether it will be delayed even more.

First of all, what is the Tesla Model X? It is Tesla's minivan version of the current Model S, which entered production around the middle of 2012. It makes for a much more spacious interior, and it adds four wheel drive for optimal Winter performance.

It has been my opinion since inception that the Model X is a guaranteed success. Almost everyone I know want some sort of plug-in minivan, as opposed these smaller or otherwise low-slung cars that's been the norm for plug-in electrics to date.

So why has it been delayed?

Let's first establish the history: The Model X prototype was unveiled in February 2012, and you were able to place a deposit immediately. At the introduction, Tesla said deliveries would begin in December 2013 and significant volume production would happen in early 2014.

Thousands of people put down refundable deposits of $40,000 (the first 1,000 units) or $5,000 (subsequent units), expecting to get the Model X in late 2013 or early 2014. Some estimates now have that list approaching 10,000 deposits. That would imply $85 million in total deposits for the Model X (1,000 multiplied by $40,000, plus 9,000 multiplied by $5,000).

At some point around the first half of 2013, Tesla said that the Model X had been delayed by one year: initial deliveries in late 2014; volumes in early 2015.

That's roughly where the official Tesla line continues to be today. Tesla maintains it will ship the Model X in late 2014, with the car ramping production in the second quarter of 2015 (sounds like a one-quarter slippage from early 2015).

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
TSLA $183.01 -1.10%
YHOO $45.13 0.07%
AAPL $125.23 1.60%
FB $83.89 0.71%
GOOG $552.28 0.72%

Markets

DOW 17,976.24 +263.58 1.49%
S&P 500 2,078.50 +17.48 0.85%
NASDAQ 4,932.2780 +41.0590 0.84%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs