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Tesla Model 3 Vs. US Incumbents – weapon in a knife fight or fair fight?


Published on March 18, 2019 |
by Vijay Govindan

18. March 2019 by Vijay Govindan

I recently ran a Twitter survey to decide what to write next. The most important article that voters asked me was an article about how the Tesla Model Standard Range (SR) competes with models from established automakers. The wonderful thing is that Tesla is now cheap, with no incentives. The total cost of ownership is very competitive, even if the vehicles are far below its class. If incentives and TCO are taken into account, the Model 3 is hard to beat.

Let's take a look at this.

The Tesla Model 3 Standard range is priced at $ 35,000 before incentives, gas savings or maintenance costs are saved. Based on a Green Car Reports Survey 44% of Tesla Model 3's buyers are Standard Range or Standard Range Plus.

# 1 bestseller in the US (2018) – Toyota Camry

From toyota.com this is the most expensive inventory I could find in the zip code 90210. (Not my zip code – I just found it funny.) I've used the same zip code on all cars and found the highest class vehicle for each of these models.) Some of these high margin buyers make reference to trim SR or higher.

Although the Camry is a more expensive vehicle, it has a metal roof of glass is slower and less secure.

This is the most expensive inventory I found on Camry Hybrid. Hybrid vehicles continue to suffer from the disadvantages of gas engines (such as higher maintenance) and higher cash prices than their gasoline versions for hybrid batteries. It's just a compromise that does not make sense anymore. I assume that buyers of niche hybrids will prefer Tesla or other all-electric cars.

# 4 Best Selling Car in the USA (2018) – Honda Accord

Again, the most expensive accord (in this case a hybrid) is just below the SR price. With incentives in California and the states, the SR is well under $ 30,000.

# 6 Best Selling Car in the USA (2018) – Nissan Altima

The same applies to the Altima. Dealer prices vary. Tesla online prices will not.

Nissan Maxima

The Maxima targets a higher end of the mid-size limousine market. It's right in front of the Model 3 adornments. Et tu, Long Range Edition?

What does the Maxima actually offer if someone chose it for a Model 3 Long Range?

Nissan LEAF

I would expect new LEAF sales to be good, especially in Europe. The 60 kWh version is expected to be $ 5,500 more than the 40 kWh base version. This car can receive the full tax credit of $ 7,500 and government incentives. The lower price and the large Nissan dealer network can convince some buyers to go this route. Some employees of CleanTechnica have the leaf. But the Model 3 clearly has a faster acceleration, more advanced navigation, Easter eggs, a glass roof, a boot and more seals of quality.

# 8 Bestseller in the US (2018) – Ford Fusion

The Ford Fusion was the 8th bestselling car in the US, according to CleanTechnica 2018. This car is now deducted from the MSRP at $ 4,000, probably because it is set. Therefore, this model is close to the model 3 SR. The model above is the plug-in hybrid version of Fusion Energi.

# 9 Best Selling Car in the US (2018) – Chevy Malibu

The Model 3 SR is competitive with the upper end of the Chevrolet Malibu. What would you buy?

# 12 Best Selling Car in the US (2018) – Hyundai Sonata

The Hyundai Sonata was ranked 12th on the list of best-selling cars of 2018. The Model 3 Mid Range / Long Range was # 11. The Standard Range is now priced competitively with the Sonata.

Here is one of the weaknesses of the merchant's model. If I wanted this sonata hybrid, it would be almost 35 miles from my zipper. The next thing I could see was 17 miles away for a similar vehicle. Tesla's online sales model and home delivery sounds better to me.

I also believe that the plug-in hybrid market will fall faster on full electrics (BEVs) than the pure hybrid market. I hope manufacturers see the demand for BEVs, increasing the supply of their own BEVs quickly. That's better for us all.

You could argue, and I would not agree with that, that the model has 3 luxury cars and should be compared to luxury contests. The reason for which I can not agree is the Tesla Letter to Shareholders for the fourth quarter of 2018, which shows that former owners came to Model 3 from a variety of sources, including mid-size cars, hybrid vehicles and the luxury market. The cannibalization of Tesla S and X vehicles was very low. This was when the car had average selling prices close to $ 55,000! Now the car is 36% cheaper, with a starting price of $ 35,000. Demand will increase significantly and may result in even cheaper vehicles being exchanged for the Model 3.

To show that the SR is competitive with luxury cars, we show the lowest price for luxury vehicles for the following vehicles.

# 20 Best Selling Car in the US (2018), # 2 Small or Medium Luxury Car in the US (2018) – Mercedes-Benz C / CLA Class

The Mercedes C / CLA class was on our list of best-selling cars for 2018 and # 2 on our list of small and medium-sized luxury cars. It was the only luxury car except for the Model 3, which received the list of bestselling cars of 2018. With the CLA 250 Coupe the SR scores in the price. The C300 is now much more expensive.

# 3 Small or mid-range luxury car in the US (2018) – Mercedes-Benz E-Class

The Mercedes E-Class was ranked number 3 in our luxury car list. This is much more expensive than the SR. A buyer in this area could compare the E-Class with the Long Range or Performance variants of the Model 3.

# 4 Small or mid-range luxury car in the USA (2018) – Lexus ES

The Lexus ES ranks fourth on our 2018 luxury car list. The lowest value I could find was between $ 41,000 and $ 43,000. Lexus is known for its quiet ride and high reliability. The model 3 is super quiet due to its electrical characteristics. It far exceeds the fuel consumption of the Lexus. I'm sure some will prefer Lexus for its luxurious finishes. Others may venture out and buy their first high-tech luxury Tesla.

# 5 Small or mid-range luxury car in the USA (2018) – BMW 3 Series

The legendary BMW 3 Series finally reaches number 5 in our luxury car list. Remember that # 1 was the Model 3 Long Range and Mid Range. Since the end of 2018, the long range has gone through a significant price decline.

The BMW 3 Series was the benchmark that Tesla should beat. For decades the BMW 3 Series was the car with the best driving characteristics. Many praise the Model 3 for unmatched drive quality.

The cheapest 330i I could find was close to $ 43,000. That would be the equivalent of the Model 3 LR. If the LR defeated the 3 for a higher price, we can now imagine that the LR has the same price.

I leave you with these two charts of all competitors in the market for small and medium luxury limousines. The first shows each midsize luxury car as a percentage of the cost of model 3 SR. We can see that the Model 3 SR is very close to or among all the top competitors.

In the next graphic we see that every car increases its previous market share. We see the sudden jump with the model 3. Remember that this was the case last year with a more expensive model. At $ 35,000, the 3 SR has another potential market potential of 71% for vehicles whose prices are significantly higher (but lower in performance). This is exceptional, pointing to the ongoing success of the Model 3 in the luxury segment of the middle class.

For the trolls concerned, unsuspecting financial analysts and hostile journalists in the US are worried about Europe, China, and beyond, my words to note: The sale of Model 3 will continue to surprise and embarrass the current automakers. The demand for all trimmer trains of the model 3 will increase steadily. Every factory that Tesla builds is more efficient than the last one. Each new vehicle that Tesla introduces is aimed at large, fat profit centers. Are you ready to rumble?

Tesla brings a weapon to a knife fight. It will not be pretty.

Tags: BMW, BMW 3 Series, Chevy Malibu, Daimler, EV Sale, Ford, Ford Fusion, GM, Honda, Honda Deal, Hyundai, Hyundai Sonata, Lexus, Lexus ES, Lexus ES Hybrid, Mercedes, Mercedes Benz C Class, Mercedes Benz CLA Class, Mercedes Benz E Class, Nissan, Nissan Altima, Nissan Leaf, Nissan Maxima, Tesla, Tesla Model 3, Tesla Sales, Toyota, Toyota Camry

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Vijay Govindan Vijay Govindan is interested in sustainable living, financial education and the overlapping of astrophysics and climate change. Rick and Morty Fan. Follow him on twitter @ vgovindan17

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