Rumor Killed ... Tesla's (TSLA) Model X Will Have Falcon Wing Doors

Remember all that hubbub yesterday from Morgan Stanley that Tesla (NASDAQ: TSLA) was going to 86 the gull-wing doors on the Model X? Well you can forget all that... the doors will stay.

Not only did Tesla CEO Elon Musk take to Twitter to squash the rumor, but the company issued a formal response to Morgan Stanley about the misplaced speculation.

The company has provided Morgan Stanley the following feedback for clarification on the topic:

• The Model X will have Falcon Wing doors.
• The doors 'weren't the challenge'. They are relatively easy to execute compared to other technical accomplishments at the company.
• Tesla has customers that want Falcon Wing doors.
• There has been no parallel development of conventional doors at Tesla.

Morgan Stanley's Adam Jonas said, "In our opinion, investors should allow a reasonable level of execution risk on the many unprecedented innovations brought to market on the Model X including never-been-done-before attributes like the double-hinged falcon doors. The questions we raised in our November 17th note are based entirely on the views and opinions of the Morgan Stanley Global Auto team."

He added, "Tesla is a top 4 pick in our ranking of N. American auto stocks and we reiterate our OW rating. That said, we suggest investors apply a reasonable level of execution risk on a variety of endeavors including the launch of Model X, the pace of the commercial ramp in China and the entry-level price point/total addressable market of the Model 3. Fiat Chrysler is the only US OEM we recommend ahead of Tesla Motors by measure of risk-adjusted return. "

Earlier, Jonas slashed Model X and EPS forecasts on Tesla. The firm cut 2015 Model X delivery forecast from 15,000 to 5,000 and cut 2015 EPS from $4.39 to $2.45, which is well below the consensus of $2.99.

Shares of Tesla are down 3.9% intra-day to $247.57.

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