Remember When The Germans Laughed At Tesla? Not So Much So Now With The "Tesla Effect" Destroying THEIR Segment

Remember When The Germans Laughed At Tesla? Not So Much So Now With The

There was once a time when plush leather seats, chrome-trimmed knobs, metal buttons, and a loud, grumbling engine were the hallmarks of a luxury vehicle. That was the status quo for a very long time, but with the emergence of Tesla and its tech-focused approach to cars, these age-old definitions of luxury in the automotive industry are getting disrupted.  

In a recent article, American bank holding firm Capital One opted to examine a phenomenon in the second-hand luxury car segment that it dubs as “The Tesla Effect.” According to the financial firm, the influx of sales generated by Tesla consumers’ reaction to the brand amid the release of more attainable vehicles like the Model 3 has pretty much wrecked the pre-owned luxury segment. And the biggest victims of the Silicon Valley-based electric car maker are some of Europe’s strongest brands.


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iLexusiLexus - 10/8/2019 3:20:02 AM
-5 Boost
Seems like people have a hard time accepting the fact that Tesla buyers are also a huge number of previous European buyers. Myself and others are also trading in our BMW for Model 3 Performance. Tesla average selling price on Model 3 is almost $50,000. Who do you think these buyers are? Do you think Camry/Accord/Mazda6/Charger/Malibu/Sonata buyers are spending $50,000 which is double than there cars? I'll let you figure that out. Some People are in denial. Do you think all Prius buyers are now buying $50,000 cars? Do you see the latest declines in Audi sales? Who are these $50,000 Model 3 car buyers?

Demand problem? What demand problem?
Tesla sold 28,000 cars 2015. 2019 that number is 158,000. What other automaker ever had that type of growth? Demand Problem? When the trucks hit the road and China goes into full effect, where do you think the demand will be? Tesla is the fastest growing automaker in the world. Demand problem?

The $100,000 car segment. Who do you think are buying Model S? Prius buyers? Cadillac/Lincoln buyers are getting $100,000 cars? The Model S is out selling the $100,000 S-Class, Audi A8, and 7-Series.

Fact: A large buyers of Teslas are previous European car buyers. The facts are in the numbers.

Saying that Tesla is not a true luxury car or don't compete? How long are people going to use that as an excuse because it's outselling some of the European cars? Studies shows a large number of Luxury car buyers are loving the simplicity of Tesla interiors even though some may hate them. Some people don't like change and have a hard time adopting to the Tesla effect.


Section_31_JTKSection_31_JTK - 10/7/2019 7:27:53 PM
+7 Boost
I really doubt the Germans are worried all that much about Tesla, the one trick pony.


SanJoseDriverSanJoseDriver - 10/7/2019 10:33:55 PM
-4 Boost
They're a little bit worried or at minimum responding to pressure from Tesla:

Blume (Porsche CEO) gave a nod to Tesla CEO Elon Musk in his interview, stating that he has “great respect” for his Silicon Valley-based counterpart. The Porsche executive stated that ultimately, it is Tesla and Musk’s “innovations” that allowed the EV industry to become as prolific as it is today.




wilfredwilfred - 10/7/2019 11:15:19 PM
+6 Boost
Just let these Tesla fans live in their own little world...


TomMTomM - 10/8/2019 12:17:11 AM
+10 Boost
TEsla does not exist in their segment - even at the Audi Low end. Tesla is a BUICK middle premium competitor - it certainly has not lived long enough to have the Prestige of a REAL Exotic or Premium car - and its top seller has all the Luxury of a Toyota Corolla inside.

True Premium cars do not sell in the volume that the Model 3 does - which is a MASS market car - not a Premium. When You drive up to that Exclusive Eatery- the Porsche or Mercedes or Exotic will get the Space up front and the Model 3 will be hidden in the back somewhere


SanJoseDriverSanJoseDriver - 10/8/2019 3:04:18 AM
-4 Boost
I wouldn't be so sure about the prestige comment:

https://autowise.com/tesla/

The Model 3 is easily in the same class as a 3-series by almost any metric besides number of buttons. Feature for feature, it matches a 3-series and then some.


iLexusiLexus - 10/8/2019 10:30:23 AM
-5 Boost
Why are luxury car buyers buying Tesla if it don't compete? Who is Tesla competing with? Camry? $25,000 Camry buyers are not buying $50,000 cars, nor Camry buyers are buying $100,000 model S. Then what segment do they exist?


SanJoseDriverSanJoseDriver - 10/8/2019 7:36:38 PM
-6 Boost
Right, I'm sure you would take a Mirage over a Model 3... only a mental patient would make such a ridiculous choice.

Model 3 is pulling buyers from the 3-series, A4, Camry, Prius, etc. It's pulling people that are driving cars anywhere from $20k-60k based on trade-in data. The aesthetic is actually pretty damn nice and the seats are very comfortable. It has every tech feature you can find on a luxury competitor and then some.


TruthyTruthy - 10/8/2019 3:53:32 PM
+7 Boost
Global sales for the top luxury brands are doing just fine. The article headline, "destroying their segment" is so hyperbolic as to be laughable.
So, when is Tesla going to make a profit? And bragging about a sales increase of 130,000 cars over 4 years!?! Please, that number only seems big to Teslarati followers.
The demand curve is flattening. It is hard to see a path to profitability.



SanJoseDriverSanJoseDriver - 10/8/2019 7:37:56 PM
-5 Boost
They are going into Q4 with their highest order backlog ever of cars that are in production. 110k net orders are ready to go, they just need to make cars for those buyers.


SanJoseDriverSanJoseDriver - 10/10/2019 3:25:48 AM
-2 Boost
What care company do you care about? Just curious.


SanJoseDriverSanJoseDriver - 10/11/2019 10:34:26 PM
+1 Boost
Yeah, there is a difference between a reservation and an actual order.


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