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Morgan Stanley (MS) Questions Tesla Motors Inc. (TSLA) Model-X Delivery Capability

Tesla Motors Inc. (NASDAQ:TSLA) stock sunk in the market after a research note from Morgan Stanley questioned the automakers ability to ramp up production as problems about Model-X falcon wings continue to surface. CEO, Elon Musk was forced to quench the concerns reiterating that the automaker was not in any way considering scraping away the falcon wings.

Tesla Motors Inc (NASDAQ:TSLA)

“Tesla came under some pressure as Morgan Stanley said 2015 numbers will be a little lighter than they were expected as far as deliveries and earnings per share,” said Fox Business’ Nicole Petallides

Morgan Stanley (NYSE:MS) has already slashed Model-X delivery estimates for 2015 from a high of 15,000 to 5,000 as concerns over the company’s ability to deliver the car on time continue to persist. Tesla Motors Inc. (NASDAQ:TSLA) was forced to push the unveiling of Model-X to the third quarter of 2015, up from the second quarter guidance that had initially been given. Musk has already defended the decision arguing that the delay was due to complexities in the scaling of the cars production and not any other major problems.

Morgan Stanley now expects Tesla Motors Inc. (NASDAQ:TSLA) to post full-year earnings per share of $2.45 a share down from an initial estimate of $4.39 a share. Analyst consensus estimates currently stand at $2.99 a share. Morgan Stanley argues that Tesla’s latest Falcon-wing doors that open upwards will be a bit hard to produce as their double hinges have never been used in that kind of door before. An analyst at the bank had also suggested that the giant electric company might opt to do away with the doors a move that may further delay production of the car.

Despite the harsh comments on Tesla Motors Inc. (NASDAQ:TSLA)’s Model-X the analyst at Morgan Stanley remains bullish about Tesla with an overweight rating. It is not the first time that Tesla has slid in the market on negative sentiments. A few weeks back the stock sunk on huge volumes after Musk reiterated that the stock might be overvalued.

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