Despite its otherwise stellar sales, Tesla is facing a bit of a slump where its new Model X is concerned. Even as the US experiences a refreshed demand for mid-sized SUV¡¯s Tesla¡¯s offering has been in the lower tier of sales as compared to it¡¯s competitors. Now CEO Elon Musk is taking responsibility for that, and admitting the company made a miscalculation.
According to Bloomberg, one of the reasons the Model X isn¡¯t flying out of showrooms is that the luxury SUV is too complex; it has just too many things going on, which has made customers shy away.
¡°Luxury SUVs are really hot right now, and the Model X should have been a big hit and broadened Tesla¡¯s audience, Michelle Krebs, an analyst with Autotrader.com, said . ¡°You don¡¯t hear a lot of buzz about the Model X, and when you do, it¡¯s the negative stuff.¡± Musk himself has gone on record to own up to that mistake, saying the decision to put all of its latest technology into the Model X SUV was a ¡°terrible strategy.¡± Experts believe Tesla tried to put too many features into its car, ending up with a vehicle that ultimately underperforms in the basic capabilities of its own class. For instance, customers say its eye-catching Falcon Wing doors make it almost impossible to load luggage onto the roof, one of the basic requirements of an SUV.
Director of automotive testing at Consumer Reports, Jake Fisher, said, ¡°SUVs are popular because of utility, and this is an SUV that doesn¡¯t have a lot of utility. The X was a big science experiment to say, ¡®How far can we go?¡¯ And they went too far.¡±
In a rare display of sincere introspection from a major corporation, Elon Musk tweeted saying that the company has learnt its hard lesson and will apply that to the upcoming Model 3. He said the company would be producing base variants first, before offering other variations with AWD and other more complex features.
Of course, analysts also believe customer expectations themselves are partly to blame. An SUV is expected to take its passengers on highways as well as off roads, so a fully electric vehicle like the Model X might be unappealing to potential buyers.