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Home / Business / Model S, Model X production continues for 'sentimental reasons' – TechCrunch

Model S, Model X production continues for 'sentimental reasons' – TechCrunch



Tesla continues to produce Model S and Model X more for "sentimental reasons than anything else," CEO Elon Musk said Wednesday during a conversation with investors, calling the electric vehicles "niche" products.

"They are really of minor importance for the future, Musk adds.

Sales of Tesla Model 3 vehicles far outweigh the company's older Model S and Model X vehicles. Tesla delivered 1

7,483 Model S and Model X cars in the third quarter, against 79,703 Model 3 cars, and Musk expects Model Y, which has not yet been produced, to surpass Model 3 sales.

Still, Model S and X are more expensive and lower in volume than Model 3, vehicles have been important to the financial company's health for many years.Tesla's gross car margins have been buffeted lately by sales of more expensive (and better margins per vehicle) model S and X vehicles.

The vehicles may not be But Tesla is sticking with the two vehicles for the time being.

Tesla is increasing production on the Model S and X lines this quarter in response to growing demand for electric vehicles, CFO Zach Kirkhor noted n during the conversation.

As Tesla launched ramped and stabilized M odel 3, the company is now capable to focus its attention on the rest of the products, Kirkhorn said.

Tesla continues to see strengthened order rate, [19659015] which company expects will be reflected in deliveries of Model S and X in fourth quarter, Kirkhorn added.

Musk took time to fantasize about the Model S, especially the newer version, which has a new "Raven" power.

"In s so easy [19659008] to drive, it makes you feel like Superman driving [19659008] as a car, "he added." And it's incredibly safe. "

Musk then described X as" the fable of cars, "before adding that" it's a work of art in the first place. "


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