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Tesla Motors Inc (NASDAQ:TSLA): Aiming For Woman Car Buyers With Model X

Tesla Motors (NASDAQ:TSLA) is making news once again as new revelations emerge over the weekend about its hopes for the Model X. According to Business Insider, Tesla would love to see the Model X to appealing to women car buyers.

Model X

Tesla’s Model X has been touted as the key to Tesla’s long-term growth and market dominance in the electric vehicle market. The Model X was launched with much fanfare in 2012; however, the car is yet to make it to the market because of numerous delays in design and production. However, Tesla CEO, Elon Musk has revealed that the Model X would hit the markets in the next three to four months.

The Model X is Tesla’s attempt to try its hands at SUVs after its success with the sedan in the Model S. However, the Model X is not just another SUV because of its radical design. Apart from the fact that the Model X is an electric vehicle, it will sport falcon wing doors that open upwards instead of swinging outside. The Model X will also have a range between 170 miles and 230 miles on a single charge. More details about the Model X will be released in the weeks preceding its delivery.

Before the Model X, There Was a Tesla Model S

Before the Model X, there was a Model S, which had been a complete success story for Tesla. In fact, Tesla can’t make the Model S as fast as it sells them. However, Musk has occasionally admitted that the Model S “a little too guy-centric”; hence, the firm is looking at attracting buyers from the feminine side of the market.

Model X Made for Women

Tesla is not shy to admit that it is making the Model X with women in mind. The firm has revealed that the Model X will mainly appeal to women. In fact, ValueWalk reports that Tesla sought the input of a female focus group last year. The purpose of meeting with the female focus group was to find out how the Model X could be designed to meet the needs of women.

The focus on women seems to be paying off for Tesla. Elon Musk reveals that more than 50% of the pre-orders for the Model X came from women. Interestingly, the firm has received about 20,000 pre-orders for the Model X. Hence, it is safe to assume that 10,000 pre-order of the Model X is from women.

Women’s attraction to SUV’s stems from the fact the fact that they need the large cargo to transport kids and family members. From one little league game to the next, onward to piano lessons, ballet classes, and visits to the dentist, the SUV is the choice car for women.

Model X and Tesla’s Market Dominance

The Alliance of Automobile Manufacturers said that women spend about $200Bn on vehicle purchase and maintenance every year. The Washington Post reports that women bought 40% of the 17 million trucks and cars that were sold in the U.S. in 2014. Women bought as much as 50% of the SUVs sold last year.

The Model X is Tesla’s third car in 12 years and the firm doesn’t plan to debut new cars on the market until 2017. Hence, having the Model X appeal to a wider audience will keep sales rolling until the mass EV model 3 hits the roads in 2017.

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Victor Alagbe

Victor Alagbe is a seasoned business and finance writer with a specialty in writing about how to invest for the long-term in healthcare, pharmacology, energy and tech stocks. His long-term focus is on stocks that provide a nice mix of growth and income. For the short term, he passionately writes about trading stock options for the excitement and leverage that stock options offer.
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