Tesla Motors, Inc. (NASDAQ:TSLA) stock rose by three percent on Monday as fans of the company are finally getting their wish: the model X is on its way.
CEO Elon Musk’s legendary electric car company sent out invitations for the launch of the new Model X SUV on Monday morning, with its launch date set for September 29th. (Source: Forbes, last accessed September 21, 2015.)
The launch ceremony will take place at the Tesla factory in Fremont, California, located only a short distance from the company’s Palo Alto headquarters.
Mainstream consumers have not yet seen the new Model X live, with only computer renderings available to tell us what the new car will look like.
The Model X Signature Series will be the first off the assembly lines, an exclusive and limited offer only for those customers who pre-ordered the vehicle. The price range for these will be in the ballpark of $132,000 to $143,750, though Musk said that the Model X will run you about $5,000 more than a Model S. (Source: Investor Place, last accessed September 21, 2015.) We can reasonably assume, then, that the starting cost of a Model X will be in the range of $80,000 before incentives.
First announced in February of 2012, Tesla began taking pre-orders of the Model X shortly after. To say that this new vehicle’s launch has been extremely anticipated would be a bit of an understatement.
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The company expects the new Model X to expand Tesla’s global appeal, underlining the currently rising popularity of the SUV/crossover market segment. Interestingly enough, Tesla has announced that it hopes the new model X will be more popular with women than men—who prefer the Model S and are the majority of its buyers. (Source: Bloomberg, last accessed September 21, 2015.)
These are important steps for Tesla, which many analysts and fans forget is still a very young company. As such, every new step is a major one, and new questions are springing up. Will the new Model X live up to the hype? Will Tesla be able to scale up its production to meet the onslaught of demand? Will Tesla be able to maintain product quality if it does succeed in scaling up?
Most importantly, what will this mean for Tesla stock prices? They have been experiencing volatility in the last few months as news of the company bleeding money has come out.