Tesla's Biggest Cheerleader Thinks Model X May Be Overpriced

Aaron Cole
by Aaron Cole
tesla s biggest cheerleader thinks model x may be overpriced

Morgan Stanley analyst Adam Jonas issued a lower target for Tesla on Wednesday, saying the automaker’s SUV price tag is too hefty for the carmaker to meet its production volume goal for 2016.

Jonas wrote that the $130,000 SUV is just too pricey (via Business Insider):

Even allowing the Model X (average transaction price) to decline over time through the introduction of lower-spec models leaves what we believe to be a higher-priced vehicle than we expected that may struggle to meet the volume expectations of the market and our forecasts.

If you remember correctly, Jonas was the analyst that called for Tesla’s stock to effectively double because he had a good idea for the automaker, which he said was the world’s most important.

Jonas slightly revised his target to $450 from $465, so the “overweight” rating requires some context. Nonetheless, Jonas’ small turn reflects a reality for the automaker that they probably already know: Tesla will need an affordable car soon if it hopes to turn a profit by 2020.

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  • CJinSD CJinSD on Oct 06, 2015

    I thought the reason the X is so expensive is because Musk has gotten so good at playing the conspicuous consumers of self-righteousness that he expects the first year's demand to be sufficient that he can make everyone buy the top of the line model. If there isn't demand for $132K+ X-cars, then he'll sell the $80K+ ones that EPA janitors can afford.

    • PandaBear PandaBear on Oct 06, 2015

      It is expensive because they couldn't ramp up production yet. If you can sell all the $132k top models because you can only make so many, good for you. Just remember to reduce prices when you run out of customers.

  • Akatsuki Akatsuki on Oct 06, 2015

    Seriously? TTAC has always had a hatchet out for Tesla. But complaining about a car with a very high up front list price and a very low TCO just betrays how stupid the whole thing has gotten. Figure 145K for the car, over 8 years, buying the service package, paying for just electricity and assuming depreciation in the moderate range - you end up with a very price competitive SUV.

  • Flybrian Flybrian on Oct 06, 2015

    And its mind-numbingly ugly from the rear 3/4s...

  • Tifighter Tifighter on Oct 06, 2015

    Following the development of the X, I never had the impression that it was supposed to be cheaper than the S. It is a bigger S with more battery and spendy doors; why would it be less at all?

    • See 1 previous
    • Mcs Mcs on Oct 07, 2015

      @redav Sell your product for the maximum amount people are willing to pay for it. It's common sense. Why do people even pay attention to Morgan Stanley after the Tesla/Uber comments and the 2009 debacle?