Tesla Motors Inc Model S has won many accolades for its design, performance, and features. But now, it has one more feather to add to its cap, and that is apparently being immune to the plunging gas prices.
Tesla Motors Model S unscathed
Amid dropping oil prices as more drivers switch to SUV’s with worse fuel efficiency, the car from Tesla Motors has not only been able to maintain its customer base, but also to grow it. Such a performance can be attributed to the cars sporty design and the consumer market that can go for a $75,000 car, says automotive research site Edmunds.com’s, director of industry analysis, Jessica Caldwell.
“Tesla proves that if you provide a sexy-looking EV people are going to flock to it,” she says.
What’s interesting to note is that more affordable electric cars are witnessing somewhat an opposite impact. For November, the electrified vehicle segment included just 2.2% of the light vehicle market. This was the lowest since 2011, and down from the peak of 3.7% in 2013, Caldwell said. In contrast, SUV’s sales were very impressive accounting for a third of the market share.
Though Tesla Motors Inc does not reveal monthly sales numbers, it reported record 11,603 deliveries for the Q3. There are many reports claiming that the firm sold around 3,200 vehicles in the US in November, up from estimated 1,200 last year.
German’s striking back
Tesla Motors has made it so big in the electric car segment that is being envied by the traditional car makers. But to overcome the threat, the German car makers are working to strike back hard at the US firm.
Bernstein Research in a report titled, “Tesla vs Deutschland Inc – Can The Germans Disrupt The Disrupter,” said when the US firm debuted with its Model S, the Germans were unconcerned.
“Then they went very quiet. Now they appear to have a strategy. The Germans are setting out to match Tesla – and ideally, to try to kill it,” said Bernstein analyst Max Warburton.
The analyst said that now the German car makers are working hard to “understand battery chemistry and electric vehicles.” Many car makers now believe that they can “match or beat Tesla.”
Audi, BMW and Mercedes are expected to come up with cars in three years to compete directly with the Model X and Model S, the analysts said.
On Tuesday, Tesla Motors Inc shares closed down 1.91% at $226.72. Year to date, the stock is up almost 2% while in the last one-month, it is up over 2%.