Tesla Motors Inc will reportedly start selling its Model X sports utility vehicle in China in the first half of next year after launching it in the US this quarter, says a report from Bloomberg. The Model X is the long-awaited to the firm’s flagship sedan Model S.
Tesla pushing sales efforts in China
The electric-car maker will open five to six new showrooms by the end of this year totaling to 15 in China, Beijing-based Tesla spokesman told Bloomberg. The EV manufacturer has planned its new stores in Beijing, Shanghai and Guangzhou to enable its vehicles hog more limelight.
The Model X might drive Tesla in China where such vehicles are seeing high demand even when the demand for cars is declining in the wake of weak economy and stock market volatility. The firm is seeing headwinds in China, where its Model S sedan is facing cancellations and charging issues, says the report.
Bloomberg said on Wednesday that China is looking to put a unified EV charging standard in place this August. The lack of standard charging makes being an EV owner much more difficult in China than in other parts of the world, and its rollout could be a boon to sale of both the Model S and the Model X when it arrive the country next year.
The Palo Alto-based firm is looking to ramp sales in China, and has hired over 20 local workshops to offer service and repairs. In China, the firm has set more than 1,400 destination charging stations, and is looking to increase the number of superchargers, or ultra-fast power points, says the report.
Model X to push sales two-fold
Last week, Tesla CEO Elon Musk said that sales of the firm will rise two-fold with the help of Model X. The firm is all excited about its new SUV to help it hit the target of selling 55,000 units globally this year.
Ben Kallo of Baird reckons that Tesla share owner should hold onto their stock into the launch of the Model X. Mr. Kallo says that others on Wall Street are simply “taking chips off the table” by downgrading the stock heading into earnings.
In the first half of 2015, Tesla delivered 21,552 cars, which is just 40% of the company’s total goal. The crossover is expected to debut this fall, and already has over 20000 orders. On the other hand, Credit Suisse analyst Dan Galves expect Tesla to deliver 7000 Model X units this year.
In separate news, Tesla outsold Nissan Leaf to become the largest selling electric car in the US, in the Q1 of 2015.
The data from auto industry analyst IHS Automotive reveals that Tesla delivered around 4,085 Model S sedans in the US from January through March 2015, or 40% of the 10,030 cars the firm said it delivered in the Q1, which is a hike of 55% over 2014. The company said that it has sold record 11,500 cars during the second quarter of 2015.
On Wednesday, Tesla shares closed down 0.94% at $263.14, and year to date, the stock is up almost 19%.