Tesla Motors Inc is reported to be raking up the European luxury sedan market. The electric car maker’s Model S has managed to outsell a number of other leading and elite vehicles. Volkswagen, on the other hand, has had better days.
With competitors growing and its emissions scandal undying, the German auto giant could probably do with a break. However, even with all that’s going on right now, VW could still put an end to the growing popularity of Tesla Motors, reports Bloomberg.
According to a motor industry journal, Automotive Industry Data, Tesla’s Model S has manged to outdo the sales of the BMW 7-Series in Europe. The figures sum up the first 9 months of this year. They also reveal that the Model S beat the sales of the Audi A8 and almost matched those of the Mercedes S-Class.
Mercedes has pretty much dominated the luxury car segment in Europe. Bearing this in mind, the accomplishments of the Model S are quite the feat.
One can’t say for sure what will be the effects of the current emissions scandal that is plaguing Germany’s auto industry. However, with the falling approval of diesel cars and the upped popularity of electric vehicles, believing that the events could push people towards electric cars – event just a bit – would not be far fetched. Though we have yet to truly see what the scandal will do to the European car market.
Tesla’s share of the overall segment is likely to see more increases in the months to come. Fairly soon, Tesla may dominate the luxury car market too.
“Tesla’s high-powered and high-range all-electric Model S, when judged from latest AID compiled figures, appears to have acquired an almost cult-like following among some of Europe’s well-heeled consumers,” the AID Newsletter explains. “Apart from Telsa’s European sales bastion in high subsidy Norway, where some 3,243 Teslas found buyers so far this year, the data suggests that it is clearly the well-off that are attracted to Tesla’s pricey crowd-stopping cars.”
Volkswagen not out, Tesla far behind
But lets focus on Volkswagen now. The firm sold around 11 million diesel-powered cars that were specifically designed to conceal NOx emissions. It’s an uncomfortable position to find yourself in, especially in a time where preserving the earth truly matters to people. A more damaging scandal would be difficult to come by.
The scandal has so far seen Volkswagen lose around half of its market value. The auto giants car prices have been dropping to suit. But though VW may be down, it certainly isn’t out for the count. Granted, while Tesla Motors focused on getting a billion dollar lead in its industry, VW was trying to fool its consumers. Also, electric cars emit no exhaust fumes.
But never mind all that. Bloomberg’s Tom Randall believes that VW could still put and end to Tesla. He also reckons that may be the firm’s only path out of its current problems.
“Tesla’s biggest problem is scaling up its operations,” Randall writes. “The company’s new Model X has a waiting list that stretches into the second half of next year, and its emerging battery business is booked until 2017.”
Tesla CEO Elon Musk says he hopes to sell 500 000 a year cars by 2020. Volkswagen on the other hand already pushes out 10 million cars to consumers a year, reports Randall. The auto giant isn’t bound by scale like its electric competitor.
Humbled, VW’s stock sits with a stock valuation of around $58 billion. Tesla Motors has a market cap of $30 billion. Volkswagen is still strong, for now. Sure the firm is having a hard time, but dealing with Tesla should be easy, says Randall.