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Tesla Model X Becoming a Common Sight in California (TSLA)

Tesla Motors Inc (TSLA) Model X

The Tesla Motors Inc Model X luxury SUV launched just hours before the end of Q3 after long delays since the initial launch plan in 2013. Customers made deposits of $30,000 for the Model X and most have waited well over a year for their cars to be built. But, so far only a handful of lucky owners have been able to get their hands on the much-anticipated luxury SUV as Tesla was only able to deliver 208 Model X cars before the end of 2015.

208 may not sound like an impressive number but in some California neighborhoods the car is becoming a common sight.  The picture below is of a Model X Signature Series P90D and was taken a few days ago on a street in Newport Beach, California.

Tesla Motors Inc (TSLA) Model X

Tesla reveals quarterly delivery numbers

Tesla, which a few days back came out with its quarterly delivery numbers, said it built a total of 507 Model X in the 4th quarter. The remaining 299 are being delivered now. The low delivery numbers do not come as a surprise, and in no way are they an indication of limited interest in the car, which has a months-long waitlist.

Tesla Motors Inc has already warned that the deliveries will be slow as it is in-process of ramping up production at its factory in Freemont, California.  At the time of launch, CEO Elon Musk hinted that Tesla was making only 5 cars a week. Since then, the production has been ramped up sharply, and in the last few days of 2015, the firm was churning out around 238 Model X a week, says the Verge.

It has been reported by a few people who have taken recent factory tours that the Model X can be seen being assembled on line one.  One factory guest reported seeing 15 of the cars parked at the end of the production line.  The Model X is built on the same line as the Model S (Line 1) but Line 2 is being completed and will focus mostly on the production of the Model X.

Separately, during the quarter, the firm delivered 17,192 Model S – up 48% from last quarter and 75% year over year.

Hints of ramping up Model X production

After the delivery of first six Model X cars, there were concerns whether or not the firm will be able to ramp up its production to deliver the cars to the customers, who have been waiting for years. Such concerns can now be laid to rest.

Even before this revelation from the firm, there were hints of the firm ramping up the Model X production. Recently, a Tesla spokesperson – Khobi Brooklyn – told the Fortune that the firm has made hundreds” of Model Xs, and soon it will start the delivery of the “general production” versions, which cost a minimum of $70,000, and forms a majority of pre-orders. As of this summer, the firm had about 20,000 Model X preorders, says Fortune.

And, in the last earnings call, Musk did says he is “confident” on ramping up the Model X production to “several hundred vehicles per week by the end of the year.”

On December 31, Tesla Motors Inc shares closed up 0.81% at $240.01. In 2015, the shares were up almost 10% and in the last one-month, they are up over 3%.

Tesla Motors Inc shares are down nearly 5 percent this morning following Sunday’s disclosure of auto deliveries.

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Aman is MBA (Finance) with an experience on both marketing and Finance side. He has work as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, playing PC games and cricket.

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