Tesla picked a perfect time to launch Model X

FOLLOWING a rough few weeks for diesel engines, Tesla couldn’t have planned a better time to launch the first of its Model X sport utility vehicles.

Hybrid and electric cars have struggled to gain traction with mainstream consumers. But Tesla - which promotes its Model S with the line “Zero Emissions. Zero Compromises.” - may see a bounce from the growing “dieselgate” scandal that has engulfed VW and cast a shadow on the German car industry.

The all-electric Model X, the second car in Tesla’s lineup after the Model S sedan, is crucial to the Palo Alto, California-based company’s efforts to both scale its manufacturing and broaden its appeal. After years of delays, the question now is if Tesla, run by Chief Executive Officer Elon Musk, can ramp up production of the X fast enough to meet its lowered sales target for 2015. Much of Tesla’s sales are back- weighted to the fourth quarter, raising the stakes for a smooth - and steep - production increase.