Luxury Car Sales

When it comes to market share for big premium cars, BMW, Mercedes, and Audi aren’t even close.

Tesla Motors Co. is facing some serious challenges keeping up with its ever-expanding ambitions, but one thing is certain: It’s selling a lot of luxury cars.

Tesla’s U.S. sales of its Model S sedan jumped 59 percent over the same quarter last year, increasing its already sizable lead among large luxury cars, according to third-quarter data released Wednesday by forecaster IHS Markit. Tesla is now responsible for more than a third of the segment’s sales. Its nearest competition—the newly updated BMW 7-Series and the Mercedes-Benz S-Class—weren’t even close

https://www.bloomberg.com/news/articles/2016-10-12/tesla-dom…

Robert

11 Likes

I suspect these are the most profitable vehicle models, too.

You might want to keep in mind that Teslas aren’t luxury cars. Tesla doesn’t call them luxury cars and they don’t feel like or compete with luxury cars. Their categorization as such is based solely on price, which is a mistake when it comes to understanding why people buy them.

So be careful what conclusions you draw based on this data.

-IGU-
(Model S owner; has never had a luxury car and never will)

A Tesla Model S looks like a luxury car, feels like one, has all the features and amenities of one, is priced like one.

If a Model S isn’t a “Luxury Car” then I don’t know what is…

Sincerely,
Charlie

3 Likes

A Tesla Model S looks like a luxury car, feels like one, has all the features and amenities of one, is priced like one.

It does look like a luxury car and is priced like one. But it’s very light on features and amenities and doesn’t feel like one. People on the Tesla forums who are used to luxury cars are constantly whining about things like “how can my $100K car not have any cupholders in the back?” and “where is the hook to hang my suit?” and “my Mercedes was much more comfortable”. The Model S is just a different type of car.

The Model S is a very expensive family sedan and a very cheap high performance car, both at the same time. But not a luxury car.

If a Model S isn’t a “Luxury Car” then I don’t know what is…

Yes, apparently you don’t know what is. Do you have a Tesla? Do you have a luxury car?

In any case, “Luxury Car” a vague demographic, and the way it is being used is not helping people’s understanding. That’s why I’m warning that these numbers should not be taken as indicative of anything without some further thought.

-IGU-

3 Likes

If Tesla’s increase in sales is directly linked to a decrease in sales of ICE luxury cars, does it really matter whether it fits all conventional criteria of a luxury car?

2 Likes

If Tesla’s increase in sales is directly linked to a decrease in sales of ICE luxury cars, does it really matter whether it fits all conventional criteria of a luxury car?

It depends on what you’re trying to reason about. If ICE luxury car sales are declining because previous buyers are now buying Tesla vehicles, that’s one thing. But if sales are declining and the Tesla buyers are former Prius buyers who are opening their wallets wider, then where are the ICE luxury buyers going?

I’m not at all sure what’s happening, but I can tell you that buyers who are used to luxury cars are generally not all that happy with Teslas. They don’t get the comfort and pampering they want, plus they have to think about charging. And the fit and finish are in many cases not up to what they’re used to.

For people like me, who love gadgets and have never driven a luxury car, it’s pure heaven. Works wonderfully, is a pleasure to drive, has incredible power, and keeps updating itself to acquire new features. Plus its maintenance consists of taking it in for annual service, and I never have to go to a gas station. I will never buy an ICE vehicle again.

-IGU-

3 Likes

I do ot own a Tesla but as a shareholder I have test driven the S model 3 different times just for fun and first hand knowledge of what I have invested in.

I have owned or leased several BMWs over a 15 yr period.

The Tesla S certainly looks and feels like luxury car to me.

Frank

3 Likes

I am a Tesla S owner (2014)
I traded up from a nearly 10 year old Malibu
So not all Tesla owners were previous “luxury” car owners.
To me it is a sports sedan, which is I believe is what Tesla calls it. I bought it for the sheer driving pleasure. Tesla makes other cars seem very 20th century.

Others probably consider it a luxury car, Bauhaus style. The multiple confusing knobs and switches and bordello like internal atmosphere of most expensive ICE cars does not a real luxury make.

1 Like

So not all Tesla owners were previous “luxury” car owners.
To me it is a sports sedan, which is I believe is what Tesla calls it. I bought it for the sheer driving pleasure. Tesla makes other cars seem very 20th century.

Whatever one may call the Model S, it is for sure a great car!

Sincerely,
Charlie

1 Like

I have owned or leased several BMWs over a 15 yr period.
The Tesla S certainly looks and feels like luxury car to me.

Most BMWs are not luxury cars. Compare the 3-series (their most popular model) to a 5 series and then to a 7 series. For instance, all leather is not created equal. Many cars mix real leather with fake leather in areas you don’t often touch. Mercedes has best in class fit and finish: just compare panel and door gaps for spacing and evenness. Listen to the lack of creaks or squeaks in the cabin, even after large temperature changes or months of ownership.

That’s not to say that Tesla isn’t the better vehicle: it certainly doesn’t provide the same level of luxury, but it does have the best drivetrain on the planet. And that can compensate for a lot.

1 Like

Right now I own a VW Tiguan but am on the list for a Tesla 3

Frank