Tesla Model X to dominate premium SUV market, Morgan Stanley forecasts
Analyst expects the crossover to outsell Model S by 2018.
As Tesla Motors completes retooling to support Model X production in the near future, a Morgan Stanley analyst has issued a prediction that the all-electric crossover will quickly dominate the premium SUV segment.
"We're expecting the X's main selling point to focus on driving pleasure (acceleration, handling, AWD), cool features (upgraded infotainment system, falcon door feature, interior room and comfort) augmented by first-to-market safety features in the area of autonomous driving and 'car learning,'" analyst Adam Jonas wrote in an investor note.
He argues that the Model S has already been a success, but the company has learned "many valuable lessons" in developing its first model designed and built entirely in-house. Financial and technical resources have also received a significant boost since the sedan was first introduced.
"We'd be disappointed if the Model X did not sweep every major Car of the Year award on offer by the automotive media," he added.
The Model X launch has been delayed past initial expectations, but Tesla promises it will be available early next year after final prototype testing begins sometime this fall. It will be a unique offering in the luxury segment at first, though it may quickly face stiffer competition from a handful of new plug-in hybrid crossovers that are expected from German rivals in the next few years.