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Tesla Motors Inc. (TSLA) Facing Mounting Concerns Over Model X Delays: Carter Driscoll

Tesla Motors Inc. (NASDAQ:TSLA) move to delay the unveiling of Model X crossover continues to elicit debate in the market with a number of firms remaining skeptical on the company’s ability to deliver the car on time. MLV & Co senior analyst, Carter Driscoll in an interview on CNBC believes that the delays are part of Tesla’s strategy of ensuring they develop a perfect product, able to fend off competition in the long term.

Tesla Motors Inc (NASDAQ:TSLA)

“I think they want to get this vehicle perfect even better than Model S they have a faster ramp and I think they will be able to deliver on that. [..] To me you are buying this stock for the Gigafactory successful buildup, out of that, and financing and for the Model-3 eventually down the road, “said Mr. Driscoll.

CEO, Elon Musk has always reiterated that the delays are part of a strategy of ensuring they deliver a top-quality vehicle that consumers will fall in love with. There has been concerns that the company’s ability to turn into profitability  could be immensely affected by increased R&D costs going forward as well as costs that are to be incurred in the construction of the Gigafactory.

Competition going forward may also be a big a headwind for Tesla Motors Inc. (NASDAQ:TSLA) according to CNBC’s Timothy Seymour as more companies make a push for the next generation cars.

“The fact that they are accelerating productions of the Gigafactory speaks for the fact that they believe that they can drive down the battery price pretty aggressively. [..]Longer term I think it is a prudent investment to make because you are really buying this so that there can be mass market EV producer, “said Mr. Drsicoll

Driscoll also remains confident about the leadership credentials of Musk maintaining he is the right man to take Tesla Motors Inc. (NASDAQ:TSLA) to the next big stage arguing that betting against him at this time might turn out to be expensive. Tesla’s ability to release Model X on time will depend on a number of factors ranging from engineering completion to supplier readiness as well as completion of in-house testing

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