Musk Expects Model X Demand to Top Sedan Sibling

Musk Expects Model X Demand to Top Sedan Sibling
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Tesla is still working quietly to bring its Model X crossover to market, warning investors yesterday that its operating expenses will increase as it prepares to sell the new vehicle.

CEO Elon Musk said despite a total lack of marketing effort on the company’s part, the Model X is already starting to build demand. He expects the Model X to be more popular than the Model S sedan, which is currently the company’s high water mark.

The Model X is based on the same platform as the Model S sedan. But when it comes to market early next year, it will be sold as an all-wheel drive product. The company plans to begin offering all-wheel drive versions of its sedan at the same time.

Both of the vehicles will benefit from lower cost batteries once Tesla has its “giga factory” online. The facility will be located in the U.S. and will deliver a greater power battery at a lower cost. Early Model S delivery and volume was constrained in part by suppliers.

GALLERY: 2013 Tesla Model S

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[Source: CNBC]