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Tesla Motors (TSLA +0.8%) will push back the launch of its Model X to late 2014, according to...

Tesla Motors (TSLA +0.8%) will push back the launch of its Model X to late 2014, according to comments from reps and information contained in a SEC filing (10-K). Tesla on the Model X delay: "We do not expect a material impact on our profitability in 2013 or 2014."
Comments (25)
  • berylrb
    , contributor
    Comments (2196) | Send Message
    Basically up to a 12 month delay to focus on maximizing the Model S production/revenue?!
    11 Mar 2013, 01:14 PM Reply Like
  • GaltMachine
    , contributor
    Comments (1139) | Send Message
    "We do not expect a material impact on our profitability in 2013 or 2014."


    Does anyone else see the irony in that statement?


    11 Mar 2013, 01:16 PM Reply Like
  • Cassina Tarsia
    , contributor
    Comments (643) | Send Message
    Big disappointment! Too bad, but guess Tesla would rather have it right than to create something that would be a let down.
    11 Mar 2013, 01:26 PM Reply Like
  • Michael Bryant
    , contributor
    Comments (5526) | Send Message
    They are playing safe.
    11 Mar 2013, 01:29 PM Reply Like
  • Vico Confino
    , contributor
    Comments (205) | Send Message
    Vico Confino: owner of two Tesla S sedans delivered Dec. 21, 2012
    Ho Hum to all you naysayers and numbers crunchers.
    Looks like I own 2 Tesla S collectibles that will rapidly appreciate in value.
    Success: PayPal....Space X......Solar City.....Tesla motors.
    Failures: naysayers, numbers crunchers, short sellers
    Winners: Tesla S owners....Elon Musk
    Doubters: liars, liars, pants on fire.
    Vico Confino
    Celebrating my 80th birthday today.
    Cheers everyone.
    11 Mar 2013, 01:41 PM Reply Like
  • Locked Down Investments
    , contributor
    Comments (1353) | Send Message
    Happy birthday Vico! are always the most positive person on this website...I guess I would be happy too if I had two Tesla's in my garage! Hoping to get mine here in New Zealand before the year is out.
    11 Mar 2013, 10:17 PM Reply Like
  • vcelenza
    , contributor
    Comment (1) | Send Message
    Elon knows what he's doing.
    Nothing to fret about with this announcement.
    11 Mar 2013, 02:47 PM Reply Like
  • Placenta Previa
    , contributor
    Comments (6) | Send Message
    They have lost the capability to design a new product... some of their main power-train players left last year, after finishing work on Model S... Essentially, they could not put up with panic culture, absence of work/life balance, never-ending PR stunts, organizational chaos and the dictatorship of the Iron Man.


    I write this as an insider.
    11 Mar 2013, 02:49 PM Reply Like
  • berylrb
    , contributor
    Comments (2196) | Send Message
    you sound like a disgruntled employee, add a little balance to your comment to be more credible.
    11 Mar 2013, 03:12 PM Reply Like
  • Placenta Previa
    , contributor
    Comments (6) | Send Message
    More realistic than disgruntled or biased. Also, does one have to be an employee to be an insider?


    Some things are obvious...
    12 Mar 2013, 11:14 AM Reply Like
  • orthophonist
    , contributor
    Comments (126) | Send Message
    Maximize your return on investment. With all you can handle on orders, now and projected, hold off on spending zillions to develop the new model, become more efficient, and watch the bottom line jump. Smart.
    11 Mar 2013, 03:10 PM Reply Like
  • berylrb
    , contributor
    Comments (2196) | Send Message
    11 Mar 2013, 03:12 PM Reply Like
  • geo-eng
    , contributor
    Comments (114) | Send Message
    I agree completely. I actually think that developing the Model X may not be the best return on investment for them. Wouldn't they just be cannibalizing potential Model S sales? How many people out there would ONLY buy a Tesla if it came in an SUV version?


    Keep in mind that the heavier vehicle with higher drag coefficient and 4wD will chew through range much faster than the Model S since they plan on using the same 85 kWh and 60 kWh battery packs (the 40 kWh battery won't be an option due to this range reduction). Tesla's supercharger network is all about alleviating range anxiety and making longer distance trips more practical -- scaling up to the Model X would seem to be counterproductive in this regard. It seems to me that there is a lot to be sacrificed for the sake of a little more headroom and to sit a little higher off the ground.


    I would much rather see them invest development dollars into the smaller GenIII vehicle or vehicle(s) in the next 2-3 years. In the meantime, milk the Model S for all they can while it is the best that current technology will allow. We need to keep in mind that as great as the Model S is, it isn't Tesla's end game. So why spend precious R&D $ on two very similar models in the same stage in the technological progression? Yes, the increment in development cost is reduced because they are using the same chassis, battery packs and similar drivetrain, but will increased sales associated with the Model X offset the development cost and lead to increased profitability?
    11 Mar 2013, 04:13 PM Reply Like
  • Randy Carlson
    , contributor
    Comments (1416) | Send Message
    It will be interesting to keep watch on Tesla's order book and how they are progressing on GM with Model S.


    This looks very much like something driven by lack of near-term capacity at Fremont. That can mean either that they have more orders coming in than they can produce, or that they cannot produce all the order they have coming in... In either case, investors should pay close attention to this situation.
    11 Mar 2013, 03:24 PM Reply Like
  • Locked Down Investments
    , contributor
    Comments (1353) | Send Message
    Considering the X will be built on the same platform I don't see how power train design would be a problem? I think they might be rethinking those falcon wing doors and the challenge of making them reliable for 15+ years.


    I think this is the right move. Focus on refining the Model S, working out all the little bugs in the car and on the production line, and add all the other little luxuries that some people have come to expect on a car in this price range. Also will allow them to focus on rolling out more superchargers and adding service centers, as I actually think it is this growing infrastructure that will serve (more than any marketing) to drive future sales.
    I think they would do well to focus more on the European market, with its high gas prices and much larger govt incentives to buy EV.


    Could also work on adding new features to Model S such as AWD with increased performance (a super sport model?) at fairly minimal expense.
    I would actually prefer they scrap Model X all together if it meant a faster Gen III rollout...but it is looking more and more like Gen III will be a 2017 affair....was hoping 2016 but with no news yet its not looking likely.
    I think it would be good for Tesla and its shareholders if management could provide a more concrete guidance on a Gen III production timeline.
    Would also be good to release a few concept drawings, etc to get the public excited about this future mass market car and refute all the naysayers who claim that Tesla is just about toys for the rich.
    11 Mar 2013, 03:33 PM Reply Like
  • Locked Down Investments
    , contributor
    Comments (1353) | Send Message
    I would add that this will also allow Tesla to expand Model S production to something like 40,000 Model S in 2014 more easily than sharing the production line to make 30,000 Model S and 10,000 Model X, as they won't have to stop production for retooling, etc and obviously save by pushing back all Model X R&D for another 6 months...should translate into more revenue at less cost so higher profits in 2013 and 2014.
    Stock is up and close to all time high on this news.
    11 Mar 2013, 04:05 PM Reply Like
  • Locked Down Investments
    , contributor
    Comments (1353) | Send Message
    Sorry meant Tesla could probably now choose to produce 40,000+ Model S in 2014 as opposed to 30,000 S + 5,000 X as was planned.
    As I said more revenue + less cost = a good short term strategy to get Tesla on its feet and very healthy before embarking on any new models.
    Still I think Model X R&D and production will be less than many people think when it does happen because of the common platform and number of shared components between Model S and X.
    X production will eventually show just how profitable Tesla can be in terms of producing additional vehicles on a common platform..a capability that only Tesla and a full EV architecture can provide. See again:
    11 Mar 2013, 04:21 PM Reply Like
  • Steve Funk
    , contributor
    Comments (577) | Send Message
    <producing additional vehicles on a common platform..a capability that only Tesla and a full EV architecture can provide.>


    This is simply not true. Detroit has been building cars on common platforms for decades. It has nothing to do with EV architecture.
    11 Mar 2013, 05:26 PM Reply Like
  • Locked Down Investments
    , contributor
    Comments (1353) | Send Message
    Wrong Steve.
    You might be confusing common "platform" with common "chassis".
    A platform is the chassis, drive train, power system, transmission, etc.
    I can assure you that when Ford makes a sedan and then an SUV they probably aren't even using the same chassis but even if they could they wouldn't be using the same engine, gearbox, exhaust system, gas tank, etc, etc....this is what I mean by common platform and only an EV can do it...and Tesla is the only company in the EV space that IS doing it...and have a lot of patents to protect this process.
    Due to the high torque of the EV motor it need only be tweaked a bit in terms of its operating software to switch from sedan (Model S) to SUV (Model X)...this is why Tesla is located in silicon valley and not Detroit...EV's are more software, electronics, and battery management...something Silicon Valley does quite well...with the best electrical and software engineers in the world ;-)
    11 Mar 2013, 08:28 PM Reply Like
  • gannettguy
    , contributor
    Comments (12) | Send Message
    We stockholders might believe with a name like placenta, you should be inside. However I wonder if you truly are, as I thought all of Tesla's workers were happy, or at least not wanting to cut off their own nose to spite their face. If you really are inside, maybe you can find another place to be, as I think most of us want Tesla's insiders to be happy.
    11 Mar 2013, 04:21 PM Reply Like
  • Placenta Previa
    , contributor
    Comments (6) | Send Message
    Do the homework first. Research.


    Human potential is a very important factor. One cannot burn people/employees forever (70-80 hrs per week). The growth has to be sustainable. And yes, the staff turnover in Tesla is almost 60% (not just manufacturing), which is absurd.
    12 Mar 2013, 11:07 AM Reply Like
  • Randy Carlson
    , contributor
    Comments (1416) | Send Message
    I read some of the employee reviews. Very interesting input that every thoughtful Tesla investor should look at.


    From what I heard on the recent CC, Tesla management appears to be addressing what is clearly a 'pushing too hard' situation. The fact that they are putting off Model X production indicates they have prioritized this problem over getting Model X to market on time and if Tesla is going to be successful long term that's the right choice.


    It will be interesting to understand going forward if and to what degree this situation is being driven by Model S orders exceeding expected levels. Last quarter, the problem was obviously just learning how to get the job done. If Tesla has found that the 'job' is harder to do than they thought, that is one thing. If they have found that there is simply more 'jobs' to do - more cars to be made - that is something else. Investors need to figure out which it is.


    Many years ago I worked at a company with a charismatic leader that did really exciting things and at which everyone worked insane hours. It was definitely the best job I ever had, but every one of the problems from high turnover to burned-out employees that I see in these reviews were present at that company, too. Senior Tesla management looks to have got control of the critical choice here. That's going to be good for the employees, the company, the customers and the shareholders. But if I were an employee, I wouldn't be counting on 40-hour weeks anytime soon (maybe 45 - 50 hours though).
    12 Mar 2013, 02:11 PM Reply Like
  • ThomLandon
    , contributor
    Comments (159) | Send Message
    More proof to the critics that Musk doesn't keep his timelines.


    Evidence that he recognizes the difficulty of building cars and building a world-wide network of showrooms and repair facilities, simultaneously.


    Then add on a world-wide Supercharging infrastructure (U.S.A & Norway - Sweden).


    Getting blow-back from NADA in Mass and recently MINN with new legislation that would prohibit direct to consumer sales.


    Losing his long simmering feud/lawsuit with TOPGEAR!


    The witches brew of NYTIMES and "100M" in diminution in company value OR cancellations?!?


    Saying "PUNCHING MYSELF IN THE FACE" on a shareholder's call.


    Launching a rocket where three of four thrusters fail to initially deploy.


    Fixing all failed thrusters on the fly to meet up with ISS only one day late.
    11 Mar 2013, 06:13 PM Reply Like
  • jpmj4847
    , contributor
    Comments (508) | Send Message
    Personal, I believe that TSLA is in the money with their technology, but may have the cart before the horse. Yes to infrastructure in place and time to work out the little bugs. Investor who are not in now.....big mistake. Much like CLNE, think natural gas boom, infrastructure first please. Longer clean family trip, (electric mode / natgas) for our children!jpmj4847 P.S. I'm with you teddyg101.
    12 Mar 2013, 01:49 AM Reply Like
  • oldpartsnrust
    , contributor
    Comments (284) | Send Message
    I am for innovation and coming out with "the next big thing", but I think this is the correct move. This will give more time for the infrastructure build out that is currently going on. Not just the Tesla supercharger network (although that too...) but many municipalities and states are currently installing charging stations. The Model X is, to me at least, targeted more toward well off FAMILIES instead of the successful businessman/early adopter. This is where the infrastructure is more important. To me the SUV is more about taking the family out camping, or on a trip. I think this is the right move, especially since it gives me more time to save up for mine!
    13 Mar 2013, 10:27 AM Reply Like
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