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Elon Musk believes the Model X will double Tesla's sales

Elon MuskAP

Tesla CEO Elon Musk believes its upcoming Model X crossover will be able to double the automaker’s sales.

According to Bloomberg’s Lucas Shaw and Dana Hull, the tech mogul made the claim while speaking to the press at the Allen & Co. media conference in Sun Valley, Idaho.

The Model X is Tesla’s long-awaited follow up to the ground breaking Model S sedan.

The electric crossover is expected to be launched this fall and already has more than 20,000 orders awaiting delivery.

According to a note released last week by Credit Suisse automotive-analyst Dan Galves, Tesla is expected to deliver roughly 7,000 Model X vehicles this year.

The ramp up in Model X deliveries will likely be gradual, as the X will not reach full production until 2016.

That matches the pace of growth of the Model S. In 2014, Tesla delivered 32,000 Model S vehicles to customers and this year, that number is projected to grow to 48,000.

In total, Musk’s company is expected to deliver 55,000 autos this year — an improvement of roughly 50% over 2014.

Along with the $US35,000 Model 3, Tesla hopes the trio of models will help the company reach its goal of selling 500,000 cars a year by 2020. The Model 3 is Tesla’s mass market offering, which is expected to come in the form of a sedan as well as a crossover. According to Tesla, the company plans to debut the Model 3 concept in 2016 with initial production in 2017.

Unfortunately, Musk’s optimism hasn’t rubbed off on investors as the company’s stock has suffered a rough week of losses.

Tesla stock closed down nearly 5% today at $US255. This comes after the stock lost 4% of its value on Tuesday. The drop follows more than three months of steady gains, minus the volatility that has characterised Tesla’s stock price for the second half of 2014.

Since bottoming out at $US185 per share on March 27, the stock has rebounded big time, ended last week at $US280.

TSLA SharesScreenshot via Yahoo Finance

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