Tesla continues to prove it's a solid contender in the luxury automotive market.
According to a forecast by TrueCar, Tesla will pass up Lexus and BMW in sales this January 2019. If the brand pulls it off, it will be the second highest premium brand in terms of sales, just behind Mercedes-Benz.
TrueCar is massive when it comes to car sales. The company holds a breakdown of Tesla sales as part of its research and insight into the luxury vehicle market. TrueCar believes that, despite a potential "bleak outlook for it shareholders," Tesla will continue to prove itself as it pushes past rivals' car sales.
TrueCar provided us with some interesting and valuable information, which we've attached below:
- Eight-year-itch. Marking its 8th year of sales in the US, Tesla is on track to hit the 200k milestone now that Model 3 production is fully ramped up, fast outpacing other brands. For context, Mercedes first met this milestone in 2000 (year 53 of selling in the US market), with BMW (year 52) and Lexus (year 12) reaching it in 2001.
- Challenging the status quo. Just as Honda capitalized on the hysteria of the late 70’s oil embargo to drive sales and establish brand strength among a new generation of buyers, Tesla can capitalize on fuel prices during the Great Recession to drive investment and awareness. The company has a chance to make an automotive statement against the status quo that is less about fuel efficiency and savings, and more about the advancements in technology and saving the environment on a global scale.
- A post-waitlist world. It’s been 3 years since consumers plunked down $1,000 deposits en masse over the promise of a $35,000 car that still hasn't arrived. As Tesla fills the backlog of orders, can it still maintain a strong customer pipeline as competitors begin to introduce new models with ranges comparable to the Model 3?
- Testing price elasticity. Tesla dropped prices $2,000 on January 2, 2019 to soften the blow of phased out tax credits. This minimizes the impact of pricing disruption for now, but with thin margins, it will be interesting to see if Tesla is able to continue with further price reductions.