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Tesla Motors Inc (TSLA) Trims Delivery Time to 20 Days for $105,000 Model S P85D

It will only take a maximum of 20 days for Tesla Motors Inc (NASDAQ:TSLA) to deliver its souped-up, top of the line, electric car, upon an order being placed, according to the Wall Street Journal. This is far shorter than the waiting time for the less expensive design, an indication that the Palo Alto, California automaker is shifting its focus to high-end models to boost its revenue. For the past year, delivery times were as long as three months.

Ailing Profit Margins

Tesla Motors Inc (NASDAQ:TSLA) launched the dual-motor P85D that goes on sale for $105,000 late last year as the company sought to increase its average transaction prices to offset a decline and a further move from profitability. 2014 was not the best of years for the giant electric company as the stock lost a substantial amount of value while failing to meet its fourth-quarter delivery goal by about 300 units.

Model S P85D is now available for delivery starting late March according to Tesla Motors Inc (NASDAQ:TSLA)’s online ordering tool with the $71,000 single electric motor Model S to be made available in May. The company is expected to unveil its sports utility vehicle Model X in the third quarter.

Demand Concerns

There have been concerns in the industry about the strength of demand of Tesla Motors Inc (NASDAQ:TSLA)’s pricey vehicles, with many people calling for the unveiling of cars that would command mass appeal. The automaker has already confirmed that it will trim its staff in China as demand in the country continues to drop, even though the country is expected to account for a third of its total volume sales.

Fourth quarter securities filings on the other hand, paint another picture to the concerns of declining demand, as the company affirmed a continued strong interest in its cars despite the current low gasoline prices. The automaker expects to ship 55,000 cars globally this year which should rise to 500,000 by 2020 and more than 2 million by 2025.

Hitting the accelerator on sales this year is key as the company continues to experience an increase in spending with Tesla Motors Inc (NASDAQ:TSLA)’s CEO, Elon Musk expecting demand on capital investment to grow in the coming years.

Viraj Shah

Viraj Shah has completed M.Com (Finance) and is currently pursuing his CFP. He tracks US markets along with other global markets like India very closely. He is very passionate about stocks, real estate, and technology. He also believes that money can always be made in the market.

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