INSUBCONTINENT EXCLUSIVE:
Tesla continues to produce the Model S and Model X more for &sentimental reasons than anything else,& CEO Elon Musk said Wednesday during
a call with investors, calling the electric vehicles &niche& products.
&They are really of minor importance to future,& Musk added.
Sales of
Tesla Model 3 vehicles far outpace its the company older Model S and Model X vehicles
Tesla delivered 17,483 Model S and Model X vehicles in the third quarter, compared to 79,703 Model 3 cars
And Musk anticipates the Model Y, which has yet to be produced, could surpass Model 3 sales.
Still, while the Model S and X are more
expensive and lower volume than the Model 3, the vehicles have been important to the financial health of the company for years
Tesla automotive gross margins have been buffeted in the past by sales of the higher-priced (and better margin per vehicle) Model S and X
vehicles.
The vehicles might not be part of the company long-term future
But for now, Tesla is sticking with the two vehicles.
Tesla is increasing production on Model S and X lines for this quarter in response to
increasing demand for the electric vehicles, CFO Zach Kirkhorn noted during the call.
As Tesla has launched, ramped and stabilized Model 3,
the company is nowable to focus its attention on the rest of its products, Kirkhorn said.
Tesla continues to see astrengthenedorder rate,
which the company anticipates will be reflected in Model S and X deliveries in the fourth quarter, Kirkhorn added.
Musk did take time to
rave about the Model S, particularly the newer version, which has a new &Raven& power train.
&It&s so easy to drive, it makes you feellike
Superman driving that car,& he added
&And it&sincredibly safe.&
Musk then described the X as &the faberge of cars,& before adding that &it an art piece basically.&
