Tesla Motors Inc (NASDAQ:TSLA) recently made it clear earlier in the year that it won’t release the Model X SUV this year due to development challenges, stating that the electric car will be delivered in 2015. Even though the company says that the new model will be released in the second quarter of 2015, Morgan Stanley analyst Adam Jonas thinks that it will likely be slightly pushed back to the third quarter of 2015.
According to Jonas, it isn’t farfetched for a car manufacturer delays the launch of a new car. For one reason or another, several automakers have delayed the release of new car models as well. With the car’s prototypes not spotted anywhere either, Jonas believes that the electric car manufacturer is highly unlikely to launch Model X in second quarter of next year.
The unveiling of Model S all-wheel-drive in a colorful event recently could also be a gimmick by Tesla Motors Inc (NASDAQ:TSLA) to make users feel that the wait for Model X isn’t that long.
“It’s common for major auto launches to come a bit later than originally expected,” writes Jonas. “Typically, the bigger the launch, the more likely it is to be delayed.”
The company will definitely want to watch the performance of its new version of Model S and wait for the hoopla to die down before unleashing its new model.
Is the wait too long? Well, Jonas agrees that it’s long, but he believes that Model X could be good enough to wait that long for.
Since the unveiling of Model S “D”, Tesla Motors Inc (NASDAQ:TSLA) hasn’t performed well in Wall Street. The stock slumped a day after the event and hasn’t picked up since. The stock has been down 6.2% this week.
The fact that Tesla Motors Inc (NASDAQ:TSLA) didn’t excite investors with an AWD of Model S and that the stock has been on downward fall is a great opportunity to buy, according to Jonas.
He hasn’t changed his bullish stance on the stock though.
This article has been written by Victor Ochieng.