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Morgan Stanley lowers Tesla price target on Model X | Business Insider

In a note on Tuesday, Morgan Stanley’s Adam Jonas wrote that as great as the car was, the $132,000 price tag — mentioned in media reports and quoted for early adopters — was just too expensive.

They wrote (emphasis added):

We had very high expectations for the technical capabilities of the vehicle and it appears Tesla has met these expectations. However, the Model X price appears to have an as much as $25k higher average transaction price (ATP) than the Model S and easily $10k to $15k higher than we had expected, based on early list pricing/specification options. Even allowing the Model X ATPs to decline over time through the introduction of lower-spec models leaves what we believe to be a higher-priced vehicle than we expected that may struggle to meet the volume expectations of the market and our forecasts.

Jonas said the company would have to lower the Model X price to deliver more than 20,000 cars next year. The team also lowered its delivery forecasts on the SUV by 5,000 to 10,000 units from next year through 2018.

Read complete article here:

Morgan Stanley lowers Tesla price target on Model X – Business Insider.

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