Demand For Tesla Motors Model X Places Worries On Investors
By Alexandra Park | Apr 19, 2016 12:06 PM EDT
It appears that despite the surging demand for Tesla Motors, Inc.'s Model X, the investors and stakeholders indicates apprehension and worries. A doubled-edged sword for the investors as they marvel at the influx of demand and worry over the hurdles and the business challenges pertaining to the Model X.
A former post from Fool reports, "When electric-car maker Tesla Motors (NASDAQ:TSLA) opened up its design studio in the U.S. for Model X earlier this month, some investors might have been a bit surprised by the short wait time between a customer's order and their estimated delivery time frame. For instance, customers who put in orders for the Model X with a larger battery pack today have an estimated delivery of next month."
However, the same post explains, "Toward the beginning of the year, Tesla did begin hosting test-drive events, but these drives were limited to reservations holders only. In other words, to drive Model X, not only did potential customers have to put down a $5,000 deposit but the customer needed to be available on the location to participate and be a part of Meet Model X tour."
Given how Tesla ravaged the car industry with its unparalleled success, it has even been speculated that Tesla Motors holds the keys to dominate the electric vehicle market, reports Jobs & Hire. Moreover, it stands out that worry of the investors and the stakeholders of Tesla Motors originated on the timeframe and the elemental factors. Queries regarding the company's ability to deliver on time with such accuracy, safety and reliability rises on the surface. Since the time needed is short, investors are wondering if Tesla Motors can in turn deliver actual products and not generate backlogs for the company.
In a released statement for the 2013 Q3 shareholder letter, it stated, "As more people see our car on the road, take a test drive or talk with another Model S owner, more demand is created for our product. Demand exceeds supply, despite no advertising, no discounts and no paid endorsements."
Worry and apprehensions are natural for the investors of Tesla Motors and its Model X because the company has always aimed for excellence amidst mediocrity and every product and car model they released showcases the company's image and integrity.
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