Tesla picked a perfect time to launch Model X
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.
“We’ll see if Tesla can supply enough Model Xs fast enough to satisfy the waiting list,” Jack Nerad, executive market analyst at KBB.com said.
The Model X will compete for customers with premium luxury SUVs that are largely made by German carmakers, including the Audi Q7, the BMW X5 and the Porsche Cayenne.
While it is only certain diesel models made by Volkswagen that are under investigation in the emissions-cheating scandal, Peter Altmaier, chief of staff to German Chancellor Angela Merkel, challenged the nation’s carmakers to prove that their country remains a leader in the auto industry by beating Tesla in the nascent electric-car market.
“I know Elon Musk, I met him last year, he’s an impressive guy and his Tesla car is an impressive car,” Altmaier said.
“I would be very pleased if the German carmakers would be able to produce an e-car that’s better and cheaper than Elon Musk’s car.” Germany has been a tough market for Tesla to crack, in part because the big German players - BMW, Mercedes-Benz and VW - compete mightily with each other for market share.
Though VW is the focus of investigations, regulators in Europe and the U.S. are increasingly looking at the emissions of other carmakers’ vehicles, with focus on discrepancies between lab tests and on-road results.
“The question on a lot of minds is: Are any other automakers cheating on emissions, or ‘optimizing’ for the best emissions results?” said Brian A. Johnson, an analyst with Barclays. “Do European consumers go on strike against diesel?”
The Model X has what it calls “falcon wing” doors that open vertically and a 90 kilowatt-hour battery that is projected to have a range of roughly 250 miles (402 kilometers) per charge.
Tesla aims to deliver 50,000 to 55,000 vehicles this year, compared with a previous target of 55,000 - partly owing to production snags with the Model X’s complex middle-row seats.
Tesla delivered 21,577 vehicles in the first half of the year, which means it must deliver 28,423 vehicles in the second half to meet the lower end of its guidance.
