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Home / Business / Model S, Model X continues to be produced for "sentimental reasons" – TechCrunch

Model S, Model X continues to be produced for "sentimental reasons" – TechCrunch



Tesla continues to produce the Model S and the Model X primarily for "sentimental reasons," CEO Elon Musk said Wednesday at a investor meeting, calling the electric vehicles "niche products."

They are really of secondary importance for the future, "Musk added. Tesla delivered 17,483 Type S and X vehicles in the third quarter, compared to 79,703 Type 3 vehicles. Musk expects Model Y, whose production is still outstanding, to outperform the Model 3 market.

Although the Model S and X are more expensive and volume-saving than the Model 3, the vehicles for the purse have been important to the company's health for years. Tesla's gross margins in the automotive sector have been boosted in the past by the sale of the more expensive (and better margin per vehicle) S and X models.

The vehicles could not be part of the company's long-term future. However, Tesla is currently stuck to the two vehicles.

Tesla will increase production on the Model S and X lines this quarter to meet growing demand for electric vehicles, said Chief Financial Officer Zach Kirkhorn as part of the call.

As Tesla has launched has ramped up and stabilizes Kirkhorn said his attention was focused on the rest of his products.

Tesla continues to see a enhanced order . 1

9659015]which expects the company [19459018] to reflect in Model S and X deliveries in in the fourth quarter, Kirkhorn added.

Musk took time to rave about the Model S, especially the newer version, which has a new "raven" drive.

"I t's drive so easy [19659008] to do you feel like Superman [1965-9014] of this 19659007] Car drives, "he added. "And it's unbelievable for sure."

Musk then described the X as "the Faberge of cars" before adding that "it's essentially a work of art".


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