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 Roadster and the S are beautiful and fun to drive cars. They are also completely unreliable — hobby cars for guys with 3- and 4-car garages who already have a luxury sedan and SUV for daily driving for the family.
SpaceX is at least as "private" as Boeing, Lockheed-Martin, General Dynamics or any other government contractor.
As to "boondoggle", SpaceX is the only private entity to resupply the Space Station, as well as retrieve cargo. They've achieved robotic docking, which is impressive. They're also well on their way to having a manned vehicle, which will supply an alternative to the Russian Soyuz.
SpaceX's flight manifest has a high percentage of orders from private entities, including quite a few international orders. That's due to SpaceX having a high success rate, while providing by far the lowest cost per pound to orbit.
SpaceX is doing great, and making the old guard aerospace companies look like the hidebound dinosaurs they are. That kind of innovation is to be applauded.
Rick Sharp, former CEO of Circuit City and CarMax, has brought his Tesla to our house - impressive, but not interested. He was one of the original Tesla investors. He is also a Porsche fanatic and has a whole stable of them.
I’ll stick with the Porsche Cayman myself, you can keep your Bimmers, Mert’s, Audi’s. Just need to upgrade from the Cayman base to a newer S model.....
Like it or not, many successful entrepreneurs are liberals. Keeping them out of government should be the goal.
(Obama and Musk are both African Americans.)
“And I would choose a Tesla why?”
One possible reason would be that it would smoke your diesel performance-wise. :-)
For me, having a nuclear powered car would be a factor - but in fact my next purchase will likely be a diesel as well. However, all of us freedom loving conservatives support more freedom of choice as well, I’m sure.
Tesla is the next Delorean.
Yeah, but look at that S car go!
I wish I had bought some stock about a month ago.
The Tesla S is only comparable to 7 series beemers and S class mercedes in price. By size and luxury it is much closer to a 5 series beemer or E class mercedes. No mention of the sales numbers for the “apples to apples” comparison.
Agreed. That's comparing apples to apples. Spacex is a tremendous entrepreneurial and technological success.
On another note, it's ironic how many small government FReepers want to go back to Uncle Sam's blank check space program of the 1960's.
There is a simple solution tot he ‘bricking’ problem: a sensor which casues a complete disconnet of the car from the battery if the charge level gets to a preset ‘low’; the sensor would also cause, at the preset low, the drive train to completely disconnect from the systems as soon as the vehicle reached zero motion.
We'll see about the Tesla. A lot of rich people who want to fly in space want the Tesla to succeed. I'm suspicious of positive press unless a disinterested party puts it out. And I'm particularly suspicious of Consumer Reports. They can be bought pretty cheap.
There, fixed that for you.
Read the part about "superchargers".
If you install a 240 volt circuit in your garage, a full 300 mile charge takes five hours. Unless you sleep less than that, it shouldn't be a problem.
Elon Musk is a genius, pure and simple. PayPal, SpaceX and now Tesla. Don’t bet against him.
How about Freepers who want to forget the whole manned space travel thing, as only a personal indulgence for rich space tourists? Let those tourists pay for their own tours. Why should I care if some oligarch wants a ride? Why should I pay for it?
I suspect as much. I have followed it closely, and it might be an innovation, but Musk works too hard at massaging the media for me to really believe in it. He’s creating a legend about himself as some kind of warrior hero, and then using it to get people’s money. This thread here is like Kickstarter...
Why bother to restock? The Space Station is worthless, pointless, useless except as a potential hotel for the rich and self-indulgent. Let's give it to the Russians and forget the whole thing. Right now we're paying to fly American *cosmonaut* passengers to the SSI to do--what? Repair the Space Sation? For what, more repairs? The Space Station was always pointless, useless, worthless. It is in low orbit, and has not gotten men one inch farther into the solar system.
We have private rockets to manage satellites, which do provide an essential service and product.
We do not need manned space travel. You may need it, may long for it, but I don't want to pay for it.
He's created three successful companies so far. That is a far cry from a confidence scheme... Knowing how to promote your company is important for any CEO.
He could have quit and lived an idle life of luxury after selling PayPal. I'm glad he's had the drive to push technology forward instead.
As soon as SpaceX is publicly traded, I'll invest.
In LA one can't be a true Armenian teenager without one.
In addition to its own cars, Tesla sells electric powertrain systems to Daimler for the Smart EV and Mercedes A Class, and to Toyota for the upcoming electric RAV4. Musk was also able to bring in both companies as long term investors in Tesla. (MarketWatch.com)
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