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How the Tesla Model 3 became the best-selling luxury car in America



This is surprising for a number of reasons, not least the fact that all-electric vehicles made up only 1.2% of total vehicle sales in America last year, according to Edmunds.com.

In total, Tesla sold 146,000 units of Model 3 units in 2018. It sold remarkably well, considering the hurdles of Tesla ( TSLA ) as a relatively recent one Automotive manufacturers and the industry actively challenged accepted sales methods.

A map of Tesla's US showrooms shows large parts of the nation without a single point. Due to the legal problems of traditional car dealers, who object to car dealers selling directly to customers, Tesla is not allowed to deliver cars in some states. This means that some customers have to travel quite far to get one.

The relatively high price of the car represents another obstacle. When the Model 3 was introduced, it should have an entry-level price of $ 35,000, which roughly equals the entry-level luxury car. There was so much excitement that even before the car was launched in 201
6, Tesla had more than 100,000 paid reservations of $ 1,000 apiece. But about a year after the start of production and after only about 30,000 vehicles were delivered, Tesla began offering cars to customers without selling reservations at a higher price. This indicated that many reservation owners were still waiting for the cheaper car that had been promised to them and that had not been produced yet.
  The Tesla Model 3 is America's Top-selling Luxury Vehicle, Despite Some Challenges Tesla Faces

The exceptional performance of the Model 3 in comparison to other luxury cars depends on a few factors. For one, the luxury vehicle market is highly fragmented. Car manufacturers such as Mercedes-Benz and BMW offer countless models with the same price, often with little difference . For example, the BMW 3 Series and 4 Series are essentially the same vehicle, but the 4 Series has a rather sherbet-like body type and is available with two doors or as a convertible, while the 3 Series is available as a saloon, hatchback or wagon. In sum, anyone who is able to spend between $ 45,000 and $ 65,000 on a new vehicle – roughly the current price range of the Model 3 – would have at least 11 different BMW models to choose from, including cars and crossovers.

It also helps Model 3 In essence, there has been no direct competition, said Doug Betts, senior vice president at JD Power and Associates. Tesla has established itself as a luxury brand, and if you want a fully electric luxury sedan in this price range, the Model 3 is pretty much your only choice.

If you missed Tesla's Super Bowl ad, that's because there was none. The company does not pay for traditional advertising. But the company and its CEO Elon Musk have mastered the art of buzz building.

"When the brand hit the market, it immediately became the standard carrier," said Ken Schmidt, former communications director of Harley-Davidson and today's brand consultant. "They immediately collected the cache and buzz."

A decade ago, as other automakers tried to make electric cars practical, Tesla realized how important it was to make them cool. The Lotus-based Tesla Roadster, with its six-figure price tag and an acceleration of 3.7 seconds between zero and 60, noted that electric cars could actually be exciting and desirable. Future Tesla models built on this idea, but added practicality.

"[Tesla CEO Musk] created a vehicle that goes with a pretty influential, if not big, demographic being, tech guys in Silicon Valley," said Karl Brauer, senior editor at Cox Automotive. This, in turn, has created a strong cultural appeal that is a more effective sales tool than any other banner ad.

The question now is whether this is sustainable. In the next few years, Tesla faces the competition from brands like Audi and Porsche, which will launch their own electric vehicle lines in the course of the year. Musk claims that he will not be staggered by the new market entry.

"Our true competition is not the small trickle of producing electric vehicles that are not made by Tesla, but the huge barrage of gasoline cars from the factories of the world every day," he tweeted on January 31.

At the same time, Americans are becoming familiar with the actual Tesla products experience. More of the brand's enthusiasm will come from people who actually live and use the products. Tesla's reputation must withstand the review.

"As the cars get more and more available and they're on the road," Schmidt said, "then you need to support the hissing and the product must be great and the service must be great." [19659026]
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