Tesla (TSLA) chief executive officer Elon Musk reportedly expects the upcoming Model X sport utility vehicle to double the company’s sales volume. Musk made the comment to reporters at a media conference in Sun Valley, Idaho, according to Bloomberg. Tesla has a goal of selling 55,000 vehicles this year — it reached 40% of that goal in the first half of 2015, selling 21,552 Model S sedans. The Model X is expected to be released later this quarter. However, Pacific Crest analyst Brad Erickson believes the bar looks like it’s been set high for the second half of the year, prompting him to downgrade shares of Tesla to Sector Weight. He cited improved sentiment, recent delivery upside, and the market better appreciating the Model X and batteries as reasons that the risk/reward when it comes to Tesla is more balanced. He said his lowered 2015 and 2016 estimates are driven by expectations for less accrued leasing revenue partially offset by higher battery revenue. The move follows another downgrade of Tesla by Deutsche Bank (DB), which lowered its rating on the stock to Hold, citing valuation.
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