Tesla, which recently claimed the sovereignty as the most valuable car maker of United States, could be in trouble due to two split issues concerning the Tesla model X, electric SUV and the upcoming mass- market Model 3, electric sedan.
In spite of the demand for SUVs in the United States, sales for the Model X are struggling, at the same time name of the Model 3 is causing confusion among customers. Customers are confused as the Model 3 is something like a Model S version 3.
The sales of the Tesla Model X have not met the expectations of Elon Musk, the CEO, and founder of Tesla, with registrations of the electric SUV diminishing over the past two years.
Musk has marked up challenges with the Model X for making the vehicle too complicated. The model is featured with the double-hinged falcon-wing doors but has constrained production and contributed to starting price of $82,500 which is very expensive. For Tesla, the lack of cheaper and easier-to-produce configurations has meant missing out on roaring demand.
Elon Musk said on an earnings call this month that there is adequate demand for Tesla to sell one lakh Model S sedans as well as Model X SUVs combined this year. Tesla has worked through a backlog of Model X orders from the overseas markets and built up the supply of the SUVs in its test-drive fleet during the first quarter, both of which impacted the U.S. registrations.
“Model X has become a kind of technology bandwagon of every cool thing we could make up all at once,” Musk Elon said during an earnings call earlier this month. Tesla Model X has been rated second to the last in its rankings of 15 luxurious midsize SUVs, and on the other hand, the Model S is rated second to the ultra luxury car.
Director of automotive testing Jake Fisher said that SUVs are popular because of utility, and Tesla Model X is having with the SUV that doesn’t have a lot of utility.
Tesla has now made some significant improvements to the Model X using over-the-air software updates and offers in-person repairs for hardware issues