Automotive giant Tesla called for tight competition against the luxury cars as the company’s Model 3 gained popularity before it became totally available in the market.
Tesla might be imposing a threat against the premium automotive units such as Audi, BMW, Mercedes-Benz and Porshe, which have been one of the mainstays in the section of the profitable cars mainly in Germany.
In the recent report, there are about 325,000 pre-ordered Model 3 with $1,000 put down deposits since it was launched in April. Tesla is planning to manufacture around half million vehicles in the next two years.
“Model 3 combines real world range, performance, safety and spaciousness into a premium sedan that only Tesla can build. Our most affordable car yet, Model 3 achieves 215 miles of range per charge while starting at only $35,000 before incentives. Model 3 is designed to attain the highest safety ratings in every category,” written on the company’s website.
A recent research revealed that Tesla buyers prefer German luxury brands. Around 12 percent will probably choose Porshe and 20 percent will consider Mercedes and Audi. Meanwhile, approximately 30 percent likes to buy BMW.
Some of the major competitors of the American based automotive company raised the flaws of the firm which included the manufacturing delays and its consecutive financial stumble.
Porshe announced that it plans to make a four-door luxury sports car with a fast charger competing directly with the Model S of Tesla. On the other hand, Audi will target Model X SUV of Tesla through its electric E-tron Quattrp SUV.
Earlier today, Nissan revealed its residential battery, xStorage, competing with Tesla’s Powerwall. The introductory price for the x-storage is €4,000 ($4,560) while the Powerwall starts with $3,000 excluding the installation and extra fees. Further, Apple has expressed its interest in the car business as Tesla was about to deliver Model 3.
Stuart Pearson, an analyst at Exane BNP Paribas, explained that Tesla will target the buyers who spend around $40,000 on a car, and that’s the core target market for BMW and Mercedes basically. He added that the fact is they don’t really have an answer to the Model 3 until the next decade.
However, Håkan Samuelsson, CEO of Volvo Cars, said that the innovation hat is going to move to a new place. “Technologywise, things will probably move back to the U.S. to an extent after Europe was the center of premium car making for the past 30 years,” he said.
Meanwhile, an analyst shared that many see in Tesla the innovation they are missing from the Germans. The front runner of the German automaker needed to reduce the prices of their electronic vehicles if they would compete with the demand and market share of Tesla
At the session earlier, Tesla Motors changed hands higher with an increase of 0.13 percent to $208.96. The stock has a market capitalization of 27.95 billion and average trading volume of 4,070,600. It has a 52-week high of $286.65 and a 52-week low of $141.05.
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