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.
In my years here on FR, the longing for riding space ships is similar in my mind for the poisonous longing for pretty whores. And will leave a man just as empty and betrayed. Musk is like a pimp in this regard.
Musk's support of Obama after his election was a shrewd strategic move which helped land him the coveted spot supplying NASA, now worth $3 billion, and eventually much more, for SpaceX.
The Teslas were not purchased to be driven. Theywere purchased to be stored on blocks in museums, appreciating.
When the company fails they will be more valuable
“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.”
Some of the research done on the Space Station is worthwhile, as is some of the engineering. Has the government managed it optimally? No. I can’t believe after all these years there have been no experiments on centrifugal force as a gravity replacement. Just how little gravity is needed to eliminate the adverse effects of microgravity? We have no idea.
Regardless, it is a matter of national prestige, and has other benefits as I note below. In the big scheme of the US budget, it’s negligible in cost.
“We have private rockets to manage satellites, which do provide an essential service and product.”
SpaceX is a major player there.
“We do not need manned space travel. You may need it, may long for it, but I don’t want to pay for it.”
There are a whole lot of government expenditures that I’d eliminate first. Manned space travel is above all else inspirational. Even one child that’s inspired to pursue a technology career can change the world, and add billions to the economy.
I think there need to be major changes to some of people’s ideas about space travel for things to really improve. One of those is that the necessity of nuclear powered spacecraft needs to be recognized. Those have the potential to make manned travel anywhere in the Solar System practical and profitable.
The way things look to me right now, the Chinese will likely be the ones to make it happen.
“In my years here on FR, the longing for riding space ships is similar in my mind for the poisonous longing for pretty whores.”
The mind boggles. Go find a nice cave somewhere and get back to your roots.
I’ve never seen a Tesla on the road.
"Just pre-buy a ticket you might never get to use. I don't think he wants to sell real shares that would give stockholders a say in his management. He is running SpaceX for himself and his glamorous friends."
You have SpaceX confused with the space tourism companies like Virgin Galactic and Space Exploration. SpaceX is not in that business.
http://www.pcmag.com/article2/0,2817,2414133,00.asp
Are they the same price?
Lets just see how many of the batteries have bricked in two or three years.. And how many fires have been started. That will be the true test.. TIME.
“BTW I am surrounded by BMW and Benz cars daily.”
Are you a mechanic?
My buddy’s daughter bought one. It’s a rocket ship, at least up to 100 mph when I decided to let off.
She gets free juice at work, but another guy bought a Volt and now they’re squabbling over the plug in.
Well. There IS that little thingy about the laws of thermodynamics, but, "other than that Mrs. Lincoln, how was the play?"
I'll bet he was wearing short pants and a puffy shirt.
what if I drive more than 300 miles and it runs out before I do?
Or the hotel won’t let me plug it in?
Give me a diesel.
Like a modern day tucker huh?
I was ;)
Just to say “I saw one” ;)
https://www.dropbox.com/s/p91mzfwccvg6k20/2013-01-19%2012.42.30.jpg
My last car was also a diesel.Like my current one it was a 4 door sedan (not a truck/van/SUV,etc).My current diesel puts out 400 ft lbs of torque from somewhere around 1700rpm to 3000rpm.My previous one put out 425 ft lbs in about the same range.Have you ever been in a small or mid sized sedan that puts out 400+ ft lbs of torque? Also,I took my current car to Colorado last year and took it to the top of Mt Evans (14,200 ft above sea level).Taking it from 500 ft (in Illinois) to 14,200 feet my diesel never broke a sweat...never left 7th gear..until the drive from Denver to the summit.
I guess it all depends on how one defines "smoke".
Tesla is a profitable company.
You mean one dese hole tings inna wall? Onliest a extree big one? What da free pure moral miracle energees flows from out of?
Onliest fer hundret gran or $o??
Hellcatoot I be gettin right onnit!
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