Edmunds Says Model X Is Attracting Younger, More Affluent Buyers To Tesla

Tesla Model X

SEP 30 2016 BY ERIC LOVEDAY 40

Tesla Model X

Tesla Model X

Tesla Model X

Tesla Model X

Edmunds executive director of industry analysis, Jessica Caldwell, issued a release from a study of 5,523 Model X registrations.

According to Caldwell, Model X buyers are more affluent than Model S buyers (no surprised there, as the Model X costs slightly more than the S). In addition to being more affluent, Caldwell found that Model X buyers are younger than S buyers. This is somewhat surprising, considering wealth usually comes with age.

Quoting Caldwell:

“If Tesla is going to succeed over the long term, it needs to break through to all shoppers and not just rich early adopters who tend to skew older and male.”

“The company certainly has a long way to go with affordability, but Model X has undeniably brought in more female buyers and Gen X’ers to the Tesla brand. That’s an encouraging sign as Tesla takes a make-or-break plunge into the mainstream market with the upcoming Model 3.”

Encouraging it is.

MediaPost details the process of the study and provides us with a breakdown of the results:

“Edmunds’ study looked at all 5,523 Model X registrations recorded during the model’s first nine months on the market, and compared them to all 4,242 Model S registrations during the sedan’s first nine months of sales.”

“In the first nine months of its life, only 14% of Model S buyers were women. The Model X, on the other hand, has more than doubled that figure, with women making up 30% of its buyers. Generation X, the forgotten generation sandwiched between Baby Boomers and Millennials, is the most important demographic for Tesla, but especially for Model X. Three out every five Model X owners are between the age of 35 and 54, compared to only about half of Model S buyers.”

“Neither Model X nor Model S falls within the price range of the average car shopper, but Tesla’s audience has only grown wealthier since the SUV’s introduction. Model X is selling to a slightly more affluent audience, with 87% of buyers having reported income in excess of $100,000, compared to 78% of Model S buyers.”

Are you surprised by these results?

Source: MediaPost

Categories: Tesla

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40 Comments on "Edmunds Says Model X Is Attracting Younger, More Affluent Buyers To Tesla"

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when you are only talking about 5,500 registrations, there is no clear correlation between wealth and age because the sample size is so small that it is likely to be so heavily skewed that it doesn’t represent the general population

Hi FUDster! You don’t like this article?
5000 people is quite significative.
You forgot that the “general population” don’t buy Teslas… not yet…

“no comment” commented:

“…only talking about 5,500 registrations… the sample size is so small that it is likely to be so heavily skewed…”

ROTFL!

Seriously, you’re claiming 5500 is sample size too small to be statistically significant? What planet are you living on?

Oh, yeah… Planet FUDster. 🙄

Here’s a reality check, for you and the rest of the anti-Tesla bashers: Consumer Reports‘ sample size for the Model S, a year or two ago, was about 600.

EARTH to P2/Rexsee!!!

i appreciate that you seem challenged in your abilities to perceive reality, but do either of you have any idea of how many cars are sold in the U.S alone? (hint: it’s A LOT more than 5,500).

Trying to double down on your obvious fallacy, hmmm?

It really shouldn’t be necessary to point out that 5500 is a large fraction of the total number of Model X’s sold, and thus most certainly is a statistically significant sample size for this car.

Nobody is claiming the Model X represents a large fraction of the entire automobile market. And don’t pretend you didn’t already realize that.

Your straw man argument here is so obvious that I’m amazed you wasted time writing it.

Agreed. Gotta pay attention and think. The study was clearly and unequivocably comparing the demographics of the early adopters of both vehicles. What these others are yammering about is, at best, irrelevant.

The point of a randomized sample is that it is much smaller than the population it represents. But in this case, no sampling is needed at all, as data was collected from the entire population of Model X buyers versus all Model S buyers for the first 9 months of its availability.

Essentially, this is not a sampling, this is a census. All other car buyers are irrelevant.

An even better point. Exactly.

no, it is not a “better point”. if you are taking the facts of who is buying tesla model x cars as being merely the facts, then there is no dispute – the facts are the facts (as long as they are truly “facts”). the problem enters when you take “facts” from a small sample, and try to draw demographic conclusions. in that case, there is a good chance that your conclusions are going to be wrong. you cannot draw the conclusion that tesla attracts young affluent buyers in general on the basis of the mere fact that about 2,500 people out of that population bought a tesla model x.

I am not surprised that younger buyers are willing to spend money on Model X EVs.

The economy tanked 8 years ago because of people buying homes they could not really afford. I doubt all these younger Model X buyers are “wealthy” – just willing to go into debt to buy something “cool”.

I bet a lot of Model Xs will be hitting the used car market within a year – after getting repossessed.

Yes, I was wondering how someone making $101k (i.e., in excess of $100k) can afford a car that goes for $100k or more.

Maybe the Model X *is* their house?

Model X starts at $74K

By that logic, i shouldn”t be driving my $36k Leaf because i don’t make that much in a year. Btw, i’m on my second Leaf and still make less than $36k.

Model X is very appealing to young rich soccer moms, concerned with security, and to young males wanting to show off in their new “Falcon”.
If i could afford a Tesla, I would choose the X for it’s awesome doors and it seating height.

“Model X has undeniably brought in more female buyers and Gen X’ers to the Tesla brand.”

Gen X are people around 50-60 yrs old, it is at the prime of their career. In general, if you can’t afford a Model X by this time, you probably will never afford one.

the baby boom generation is now between 52 and 70 years of age. some people will split the baby boom generation into “boomer 1” and “boomer 2” since generations are now more defined as being within a decade. that actually makes sense because people who are the age of the clintons had a different experience from people the age of barack obama (for example, the vietnam war was not part of the lives of people in the second half of the baby boomer generation as it was for people in the first half of the baby boom generation).

no one ever seems to hold that against Escalades and fully-loaded F250s.

If you read the article, you’ll notice that they said the boost in age range for Gen X is 35-54. These are not “kids” fresh out of college…but in the prime of their careers.

I’ve been noticing that more and more commenters either never bother to read the entire article (which isn’t long, by any stretch of the imagination), or simply have poor reading comprehension and/or reasoning skills. Newsflash, folks! Jumping to conclusions isn’t an Olympic sport (yet!).

Who reports their income when registering a car?

There is no need to get the age and income data from the same place as they get the registration information. All they have to do is to be able to tie the registration information into data they already warehouse. This particular study data comes from R.L. Polk (now a member of IHS Markit) who is an international data aggregator. They collect data from everywhere, so if you have ever given any of your income information to any company where the privacy policy allows aggregation of your personal information to third parties, your personal information has already been sold to IHS and other global data aggregators. If you’ve financed a car purchase, or leased a car, check the privacy disclosure. It likely allows third party transfer of your personal data, as long as the third party doesn’t actually market to you by name, or share your personal information with others in a way that makes you personally identifiable. From there all Polk has to do is plow a data file containing publicly available automotive registration data into a program that correlates your name with all the rest of the stored data they have on you and everybody else, and out… Read more »

I guess they are relying on those after purchase surveys where you have a box to tick for your income.

Polk/IHS already has your income.

100k not as informative as maybe 200k. That, and sub 90kwh X hasnt had many deliveries, yet, to be a good stat.

And a good point.

While X only costs $5k more than Y (Model S) for equally optioned cars, the average ASP in this period is much different.

So no question, the X buyer has a higher income on average. Since the S is more practical (better range for dollar), it is what the comparatively frugal EV buyer would chooses.

Doesn’t mean this trend will continue when X75 is widely delivered. I’ve not seen a 75 yet but I’ve seen new S60’s.

They are comparing the first 9 months of the X and the first 9 months of the S – all of which would have been signature editions and large battery pack versions…the point of the comparison of the demographics for the S vs. the X is sound.

I don’t think the assumption is being far fetched. Your income maybe 100K or over 100K, but if your expenses too as as high (mortgage, college education, etc.) then there is no way you can buy/lease this car. Unless recless financial behavior is a factor here, its unclear to me how people are able to afford this over 100K car? Our income is 4 times but we are still not sure if we should put that kind of money on a car. Just cannot find the value for money. So its not because of lack of interest (We are determined not to purchase an ICE car ever) but lack of options that is preventing us from buying an electric car. Small, boxy electric cars really worry us. We will continue to wait on sidelines I guess.

I submit that the question is not how much the total income is, but rather how much disposable income someone has.

For home owners in their fifties, who have paid off their home mortgage and no longer have the expense of kids living at home, an annual income of $100k may well be enough to support, say, a three-to-five year finance plan on a $100k car. A lease would be even more affordable.

And remember, it doesn’t have to be the “average person” who has that much disposable income. It only has to be enough people to buy or lease all the Model X’s that Tesla is selling.

a lot of it also has to do with what your value system is. there was a time when $100,000 could buy you a pretty nice house, so for people who remember those times, the idea of spending $100,000 on a car is like buying a house. when viewed in those terms, it would be ridiculous to spend $100,000 on a car.

absolutely

Kids.

Ooooo, I am relieved that Tesla has stopped catering to the Food-Stamp constituency 🙂

Yeah, it’s good that Tesla can finally shake its image of marketing primarily to the homeless, Government Projects tenants, and ghetto dwellers. 😛

Even MORE affluent than the “ordinary” Model S customer???

“Are you surprised by these results?”

Well actually, the idea that Model X buyers would tend to be younger is what I expected when I first read about the concept. The car is, after all, aimed at women who have kids. In other words, mothers rather than grandmothers, despite what the “buzz” about this car has been. Furthermore, I’d expect younger buyers to be less conservative, and more willing to take a chance on unproven technologies such as the falcon-wing doors.

The lesson here is that I should trust my own common sense more, and crowd-sourced “wisdom” less.

Bodes well for Tesla’s continued success. Being viewed as the premium vehicle in it’s category by young, affluent, and probably well educated people with good jobs, is another feather in Tesla’s cap.

Incidentally, Edmunds is usually fairly down on Tesla so a positive article from them is noteworthy.

younger couples haves kids so they want x instead on S ??

but older couples can’t get in and out of slow slung cars so they also want x. ???

Agree. Around me, the X drivers are older.

If you are looking for style, most people would argue that S is more stylish. So 40s Men like the S.

But 40’s women might like the X for kid hauling. My wife does. But woman aren’t generally as into flash in a car as much as men (at least in my neck of the woods).

I suspect age is bimodal. Over 65 prefers X. 30-45 prefer X (kids). The rest prefer Y. So going by large age ranges or averages probably doesn’t tell the whole story.

Y in this case is S. Note to self, too confusing to use X and Y comparisons here. Especially without an option to correct

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Item Cost; $100,000
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–Yeah, that pretty much will skew towards an affluent, younger crowd.

mid-life 50 yo men don’t buy Minivan/SUVs.

–My teenager mentioned that she’d be willing to ‘sacrifice’ being seen stepping out of Model X any day. Surprised?