Luxury cars: the Tesla uprising
Electric car pioneers Tesla are determined to keep on top of the automotive buyer’s ever changing requirements. In doing so, they have entered a new market – that of the luxury car.
Tesla’s Sales Record over years
If you compare the sales records for this year and last, demand for Tesla’s Model S saloon increased by nearly 60% in the same quarter. This gives Tesla’s Model S quite a large lead over the other larger sized luxury cars. Of course, these figures came direct from Tesla themselves, who broke with tradition and released their internal third quarter sales figures – something they never do. This gives Tesla a market share of nearly one-third of all car sales in this category, although the recently revamped Mercedes S Class and BMW’s 7 series are hot on its heels.
Tesla is also breaking ground in the luxury SUV marketplace. Its recent release, the Model X, made sales of 5,428 during the third quarter. This gave them a 6% market share, which is not to be sniffed at, especially given the production issues which afflicted the Model X’s initial release at the start of the year. While it may not seem like a particularly high quantity of sales, it sold better than similar offerings from Land Rover and Porsche, although it fell behind seven other models from Lexus, Audi, Volvo, Cadillac, Mercedes and BMW.
What do BMW and Mercedes Say about Tesla?
When approached for a comment, a spokesperson for BMW said that they could not discuss Tesla’s figures. They would simply say that electric cars are making good progress, and gaining popularity, which is good for everyone in the automotive industry. When Mercedes were asked to comment, they did not reply to an email of the same request.
Elon Musk, CEO of Tesla, had really emphasized to his sales staff how important it was to keep sales coming and profits high while they were making such good progress, bringing in the finances needed to help increase company spending. Tesla’s current projects, which include the acquisition of Solar City Corp, and the release of its entry level model, Model 3, should be well in progress by late next year.
Whats
The Model 3 is an exciting new project for Tesla, taking them in a new direction. You might be mistaken for thinking that Tesla intended to focus solely on their luxury models, although with 17 million new cars and trucks heading on to driveways across America last year, Tesla have to find new ways to capture more of the market. The Model 3 allows them to access the entry level luxury market. Pitched as one of the more affordable vehicles in this class, the $35,000 Model 3 will hopefully be as successful as the Model S. Tesla are throwing everything at it to ensure its success as well. A new, large scale battery production plant has been built in Nevada, the expansion of its factory in California, and an increase in the service and sales network across the world are just some of the methods Musk hopes will put Tesla at the top of the pile.
Whats Next?
It may seem like a hard task, but Musk has set himself a target to build 500,000 Tesla’s per year by the end of 2018. This should put it within, and hopefully at, the top of charts for luxury car manufacturing. It will be interesting to see if he achieves it.
