Tesla Motors Inc all-electric Model S car has done very well to overtake established luxury car market leaders like the Audi 8 and BMW 7 series in Europe itself. Now, the veteran Mercedes S class is facing risk from Model S, says a report from Forbes.
Tesla ahead of luxury car makers
The above view is based on Automotive Industry Data (AID). Tesla sold 10,600 units of Model S in the first nine months of 2015 in Western Europe, higher than the sales of BMW 7 Series by 2,650 units and Audi A8 by 4,700 units. AID said that Model S was short of Mercedes S class sales by only 800 units while the difference last year was 6,200 units.
Last year, Tesla Motors Inc performed amazingly well in Norway as the govt. there imposes up to 100 percent tax on internal combustion engine cars while no tax is imposed on the electric ones. Now, the US firm’s success has grown across the board with sales of around 1,000 cars in the Netherlands, Switzerland and Germany. Since the majority of BMW 7s, Mercedes S and Audi A8 are powered with diesel, this could work in Tesla’s favor in the near future.
In Belgium, Sweden, Britain, Denmark, and France it sold around 500 to 850 units. Electric cars are not subsidized in Switzerland and Germany. “Given the rise and rise of Tesla sales in these and other European markets, there are high expectations for Tesla’s forthcoming all-new Model X SUV , albeit some sales will no doubt come at the expense of its conventionally dressed Model S brother,” AID editor Peter Schmidt said.
Rivals working on Tesla-like car
Tesla’s success is one major reason that is pushing other auto firms to come up with similar cars. At the Frankfurt Auto Show last month, Volkswagen AG, Audi and Porsche divisions unveiled concept luxury all-electric cars. Mercedes-Benz also confirmed of working on an electric car, claim several reports.
This must not worry Tesla investors. The EV firm still enjoys the early mover advantage, and going ahead it will maintain its lead with cheaper and more plentiful batteries to power its cars.
At around 10.10 am EDT, Tesla Motors Inc shares were down 0.35% at $227.40. Year to date, the stock is up over 2% while in the last three-months, it is down almost 20%