Tesla Model X Reveal Revs Up Model S Orders

OCT 8 2015 BY ERIC LOVEDAY 41

Tesla CEO Elon Musk Demonstrates Falcon Doors

Tesla CEO Elon Musk Demonstrates Falcon Doors

According to Tesla CEO Elon Musk, the reveal of the Tesla Model X actually led to increased orders for the Model S.

This, according to Musk, was a bit unexpected. Quoting Musk:

“We were worried that maybe there would be some cannibalization of Model S orders, but [people] probably went to the website and saw there’s a one-year wait [for Model X and order the S instead].” 

Musk made this statement at a SolarCity event in New York.

During that event, SolarCity unveiled the world’s most efficient solar panel, achieving a peak efficiency of 22.04% – so that was pretty impressive (and probably more important in the long run) too.

“I’m really excited about this… it’s the best solar panel on the planet and it empowers us from 2017 and beyond to control our own destiny,” said Peter Rive, CTO and Co-Founder of Solar City (as well as cousin of Elon Musk) told Mashable

Automotive News adds that Musk commented on the Gigafactory, stating that work there was “progressing very well,” and that “It’s pretty hard to hide the progress, it’s so giant.” 

Source: Automotive News

Categories: Tesla

Tags: ,

Leave a Reply

41 Comments on "Tesla Model X Reveal Revs Up Model S Orders"

newest oldest most voted

In the presentation when Elon sat down in the third row, it was a mistake. He has long legs and it made appear the third row as very cramped. The next time he should rely more on professional scenarists for at least a part of it.

Compared to the pricing (still no base pricing) and general communication woes and delays (cargo space, seats not folding…) about the X since late 2013 this was a very minor detail.

Musk did say that the Model X would be ‘about $5K more than a comparable Model S due to the larger size and additional features.’

However, that has not stopped a lot of hacks from writing articles saying that the base price of the Model X is $130K (which it is not).

The 3rd row will be cramped….I would go with the 6 seat config so 3rd row ppl can stretch their legs out in between the 2nd row seats.

Yes I know, my point is it was not a “feature to show with a tall guy”.
Bad advertising.

The market doesn’t buy it. Stock is going down since days and absolute failed to profit from the VW scandal.

Musk also has deleted the Twitter tweet, where he mentioned the Model Y. He hurts his own reputation.

The market is responding to a valid criticism: The Model X is too fancy & too expensive. Elon said it himself . . . they went too far with the Model X.

I just hope they’ve learned their lesson. Use the KISS principle.

Now build as many Model X cars as you can sell and get focused on the broader market. Get the GigaFactory build and the Model 3 out the door. And create a version of the Model X without the expensive & complex falcon-wing doors.

The market is responding to macro events.

Model X has ~30k orders. New reservations will not get delivered for at least another 9 months.

Top CUV sellers in the $80k-$145k price range adhere to the KISS principle at their peril. Nobody wants to pay top dollar for a Highlander.

CUVs are generally more expensive than sedans. Considering the added tech and advanced engineering in it’s doors and windows– plus the larger size; the price difference seems trivial. Unfortunately, the conservative media echo chamber is pretty agressively telling a misinformed narrative of a $132,000 Model X entry price. Tesla’s engineering is great, but they don’t seem to quite have a handle on PR management. 🙁 Only now, is Tesla starting to correct that misleading perception of their innovative crossover. This free advertising should fill internet sites for at least a couple of weeks, until the message is spread / corrected. Back to the Model X: I am impressed with the amount of thought, talent and effort put into the Model X, by the entire Tesla Team. That said, the vehicle is a radical departure from their first mainstream offering. Customers expect a certain level of advancements or changes between models. Unfortunately, the auto industry has held a tight reign on consumer expectations for the last 100 years. Incremental changes in technology (if any) with superficial style changes to differentiate between model years. Tesla was much bolder this time. They even dropped the nose cone, letting there be little doubt– this… Read more »

You need to broaden your viewpoint.

The market went down also when they revealed the dual drive. Then realize how a major improvement it was. The same can go for Model X. All we had is a short presentation and short test drives reports.
Let’s wait full specs,and reviews.

GO TESLA GO

Where to ?

From 0 to 60 in 3.2 seconds?

2.8seconds (with the _P90D_ fully charged).

Thanks guys. Had to ask. I mean this guy is persistent into saying this but had no clue what he meant.

Translation: It’s something someone says when they are watching football, and their team is winning. 🙂

OK, I see. So it is a bit “mechanical” when one is a fan. No real meaning. Thanks.

You’re playing dumb..
GO TESLA GO!

You caught me…;-)

No, quite the opposite. It’s usually a significant emotional display and statement of positive encouragement…

How long have you been visiting Earth?

That’s true. It is sort of funny.

PVH asked:

“Where to?”

To infinity… and beyond! 😀

But we’ll settle for 500,000 cars a year by 2020.

Hm, almost all of the criticism on Model X is from people who have never seen the car in person. I hold a reservation for one and I still feel hopeful about buying after seeing it in person and maybe test driving it. Thankfully I am not at the top of the queue so I will likely be able to first test drive.

A 90D Tesla with some add-ons equivalent to base features on X comes to about $98K. Add 5K to it according to Elon, the base should be somewhere around $103K. Still quite high but not near the $130K that is spread around.

Let us know what you think, after you get a test drive. 🙂

Yes, please do. My projection is you will not be unhappy. digicool that is.

“We were worried that maybe there would be some cannibalization of Model S orders, but [people] probably went to the website and saw there’s a one-year wait [for Model X and order the S instead].”

So then, in effect, the Model X has become Tesla’s “halo” car; a high-end model that lots of people want, but when they see the price tag (and/or the wait time), they settle for a down-market model from the same auto maker.

Of course, for the Model S, it’s not very far down market! 🙂

Well, for one thing, it shows that the market is cross-shopping the S and X, which seems odd to me.

For another, it probably shows that the apparent lack of usefulness has turned people off – no news or clarification about different 2nd-row seat configurations, such as whether there is a variation where the seats fold flat.

It probably has little to do with the price. Elon already said that X would be $5k more than S for comparable trim level. So, since there is only AWD for the X, then the X70D would be $80k instead of the S70D $75k. The increase in S orders did not correspond with the timing of that Tweet.

It probably has little to do with the manufacturing delay, since the increase in S orders does not appear to correspond with the website changing to 2nd half of 2016 for deliveries of new reservations.

Perhaps people waited to actually see a production Model S on stage at the reveal and see if the additional everything would make them want it more than the Model S. They may have held off on buying a Model S just in case the Model X suited them better.

I’m sure some people will wait for the X, and some chose not to, taking an S instead. Nothing suprising about shipping the top of the line vehicles out the door first, either.

“but [people] probably went to the website and saw there’s a one-year wait [for Model X and order the S instead]”
—————
That’s not how I see it. I think there were a bunch of people sitting on the fence about an S or an X, and after the reveal, they decided on the S.

It would be interesting to learn the cancellation rate on the Model X, before and after the Reveal. But Tesla almost certainly won’t make those figures public.

Were a certain percentage of prospective Model X buyers turned off by the inability to fully utilize the rear of the car for cargo carrying? Of course, but the question is what portion of prospective buyers will find that to be a deal-breaker. Let’s keep in mind that no matter what the Reveal showed, there would inevitably be some prospective buyers who would decide that car isn’t for them.

It looks like Tesla is betting that more people will be turned on by the falcon wing doors and by the easy access for 2nd and 3rd row passengers than will be turned off by the X not having a cavernous cargo area. I think it’s much too early to say whether or not that gamble will pay off.

Agreed.

I’m not surprised the Model S has been in more demand after the X was reveled. The Model X has some big downsides- It cost more, the rear seats don’t stow flat, the Falcon doors are over complex and will likely be a issue in the future, the Nose is also a love it or hate it.

Where as the Model S is arguably the greatest car ever made. If i had $100k and was waiting to see the production Model X id be putting my money on a P90 model S.

Maybe the jump in model S reservations reflects the review of the model S 70D by Bjørn Nyland:

Jump to:
7:40 for energy efficiency “that is impressive stuff”;
11:40 for soundproofing
18:50 for seat comfort: “next generation seats are great for sleeping in”.
22:10 Tesla RV: “Tesla please put a 300kWh battery pack in an RV”.
24:08 70D on wet road: “its so dead stable, it has so much traction; it sticks on the road like glue”.
25:00 70D launch EV grin “I would never expect the entry level model S would give me this smile”.

Thanks!!

The jump in S sales is likely because people were waiting for the X before making their mind up and then going for the S. The question then is why the S, is the X not an attractive proposition? Personally I would rather have the S than the X.

That can be read as a bad thing if some of the X buyers are switching to S due to long delay or even worse, didn’t meet their expectation.

Let us hope I am wrong, it is just the good publicity that pushed up the sales of both.

Customers choosing the S over the X isn’t a bad thing for Tesla, at least not in the short run. They’ve had three years to fine-tune manufacture of the Model S, and amortize away costs. Unit costs for the MX will be much higher initially, so every MX sale converted to a MS sale means more profit for Tesla.

Now, in another 2-3 years, Tesla selling a unit of the less expensive MS over the MX might mean less profit for Tesla. But that gives them 2-3 years to offer options in the MX which will attract more customers… like folding 2nd row seats.

It is true that Tesla still get the sales.

But if that is true, then it just means that Model X didn’t hit the target as well as it had hoped or some potential buyers hoped. That is certainly not a desirable thing. But of course, Tesla is known to improve its product constantly, so the downsides will be addressed eventually.

As Tesla has shown improved seats, premium seats, and Vegan Non-Leather seats for the S in response to customer/shareholder requests, I would be confidant that by about a year or less out, they could offer optional simpler fold flat seats. While I realise the next steps are to raise the production rate for the X to make their deliveries, and get the Gigafactory Pilot Plant online to start making the new cells for the Model 3, I think a stretched Model X by maybe 10% to 20% would suit the baby limo chauffer driffen clientelle in China and elsewhere! It could also allow for maybe 20% more battery too: 110 kWh for a full 300 miles Range! Next, full 2X length stretch of the X for party Limousines, with 140 to 180 kWh Battery, giving 380 to 450+ miles Range! This same platform could underpin a new School Bus too! Imagine not making kids walk past exhaust pipes to get on and off the Bus! It could have 250 to 350 miles Range as well! It would also get kids thinking of driving Electric from an earlier point in life! As to making other Vehicles, the School Bus would be… Read more »

Maybe Tesla could work with Airstream and make a strong and lightweight (Aluminum-Lithium and Graphite/Kevlar Composite Skinned, and framed) Aerodynamic Motor Home?!

Could be their secret test vehicle for Space X to base a Mobile Mars Command Post on!