Posted on 05/14/2013 7:17:46 AM PDT by grundle
For the naysayers who maintained that Tesla Motors (NASDAQ:TSLA) wasn’t going to make it, with the Model S too expensive to be successful, here is a fact worth reflecting on: in the first quarter, Tesla outsold comparable cars from BMW, Mercedes-Benz, and Audi.
Tesla moved 4,750 Model S units in the first fiscal quarter. Among the top three German luxury builders, the Mercedes S Class came in second with 3,077 units sold. BMW took third place with 2,338 7-Series sedans sold and Audi’s flagship A8 sold 1,462 cars, good for fourth place.
There are are few things to consider when looking at this data, which came courtesy of LMC Automotive. The three German cars all start at prices toward the top of the Tesla’s price ceiling, and no one who buys the BMW, Mercedes, or Audi get the $7,500 clean energy credit. Effectively, this makes the Tesla the cheapest car of the bunch. On the other hand, this is the pack that the Model S was intended to be running with.
While Tesla faced huge criticisms about the Model S being too expensive, which would result in a stagnancy of demand, it appears the concerns were unfounded, and that the demand is leading the segment. Given the company’s limitations as a start-up with a product that has yet to become mainstream, these figures are especially impressive.
Moreover, the Model S was never meant to be an affordable, mass market car; the company was never aiming to build the next GM Chevy (NYSE:GM) Volt or Nissan Leaf. The Model S was designed from the ground up as a luxury car, meant to compete with the likes of the 7 Series and A8.
The company’s business model suggests that as electric cars become more accepted, and concerns over range anxiety and other problems subside, the high cost of electric car technology will slope downward. And when that happens, Tesla will be ready and waiting with an entry-level, ballpark $30,000 model to market to the masses.
The trick Tesla has to pull now is maintaining the sales momentum it has built up — to show the world that electric cars can be a sustainable enterprise and not just a trending fad that will slow down to a trickle in the future. The company is already well on its way, with a crossover concept slotted for production in 2014, further whispers of a more affordable car down the road, and even a truck.
the author of this story needs to invest his life savings in tesla if he feels this strongly . . .
I heard today that Tesla Stock has doubled!
My thought was, It’s Crazy!!!!!!!!!!!!!!
We’re losing money on every sale, but we’ll make it up in volume!
Why, everyone I talk to wants to buy a Tesla car. It’s the main topic of discussion for most Americans. That and how can we cover for Obama’s stupid cronyism politics.
LOL
:-)
Article reminded me of the pump & dump days of market makers in boiler rooms.
“the author of this story needs to invest his life savings in tesla if he feels this strongly . . .”
That might not be a bad idea at all.
Elon Musk is doing a whole lot of things right. SpaceX is doing great, and Tesla is the first new car company in a long time to do this well.
Don’t drive into any deep water with it. Don’t leave it out in heavy rain.
I have seen ONE model s. Good looking car. stuff a 450 HP V8 in it and I’d buy one.
Till then, pass.
BTW I am surrounded by BMW and Benz cars daily.
Musk really just wants money to support his SpaceX boondoggle, all the while pretending that SpaceX is private and not taxpayer-funded.
Beware--until the truth about Tesla gets out couple more years down the road. It may be a miracle, or it may be a big lie.
Well, then go ahead and invest! See post above. I know a little about Musk and his antics. He’s got billions to risk, but somehow doesn’t risk his billions. Your tax money is going to him, just in a very circuitous way.
Tesla Motors is the love child of Liberals everywhere. They absolutely adore Tesla, even though it still hasn’t really produced much of anything after nearly a decade of promises (read: hype).
The only good Tesla died in 1943.
Despite its recent dust-up with the New York Times, Tesla Motors told investors and the Securities and Exchange Commission that it sold about 250 more cars than the company had expected—more than 4,750 in total. As a result, “Tesla is amending its Q1 guidance to full profitability.” Tesla did not say precisely how much it had made, but the company will likely announce its first-quarter 2013 earnings next month.
http://arstechnica.com/business/2013/04/tesla-motors-announces-that-its-finally-profitable/
Tesla sues those who write bad things about them.
I don’t know of anyone who has bought this overpriced car that has a range of about 200 miles, needs almost a whole day to recharge and becomes worthless if the battery runs out. Huge taxpayer incentives to wealthy people who buy a $100,000 car is also a factor. I’m paying taxes to support every rich guy who buys one.
This is a good article on what happens if your Tesla battery runs down.
http://theunderstatement.com/post/18030062041/its-a-brick-tesla-motors-devastating-design
And I would choose a Tesla why?
Give me a $7,500 car credit and I’ll buy a BMW, Mercedes, or Audi, too, forgot the Tesla...
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