Tesla’s fattest competition for the Model three will not come from other electrical vehicles
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Tesla says more than one million people will be buying its electrified cars annually by 2020, many of them the Model three arriving on July 28. Given today`s electrical vehicle (EV) market, that destination is still a long way off.
However it gets talked up a lot, the EV market has yet to launch. Sales of electrical cars represent just 1% of the record 17.55 million cars sold last year in the US. GM`s electrical flagship, the Chevy Bolt, hasn`t seen spectacular sales despite sunny reviews (GM announced it was pausing factory production this summer to help clear inventory off its lots). Other models aren`t exactly driving themselves off the lot either.
Despite this, Tesla is undeniably on top. The company`s Model S sedans and Model X SUVs accounted for more than half of the EV market in the US in 2016, more than the next twelve models combined. Tesla itself is one of the world`s most valuable carmakers just fourteen years after its founding as a Silicon Valley startup.
This might seem like unalloyed good news for Tesla, but it`s not. For CEO Elon Musk, the competition isn`t other EVs; it`s gasoline engines. Tesla needs to take on the conventional car market to sustain, and it needs buyers to defect en masse from fossil fuels. That`s not happening, yet.
The launch of the Model Trio, the company`s very first mass-market electrical vehicle, on July twenty eight will mark the beginning (or perhaps the end) of Musk`s quest to supply an affordable, superior EV to the world`s driveways and highways. The $35,000 electrified vehicle (before incentives) has stirred up a madness of interest since Tesla announced it in 2014, and more than 375,000 people forked over a $1,000 deposit to get on a waiting list for the car.
Tesla must find a way to sell cars to drivers who still view electrical vehicles with suspicion or indifference, or it will falter under the cargo of its costly (and mostly profit-less) expansion. Until recently, Musk had the breeze at his back. The company`s stock price soared (too much, Musk has asserted), and production numbers were back on track after some bumpy years. But in July, manufacturing delays arose. Skittish investors began to sell, and Tesla`s market cap, once eclipsing every other carmaker, was sent back to 2nd place, just behind GM. Its stock shed more than $Ten billion in market value over two weeks from a June twenty three peak of $63 billion. Now, with all eyes on the Model Trio, critics say Tesla may stall out.
«Elon Musk likes making history, which is good because he`ll have to accomplish several unprecedented feats to pull off a successful Model three launch,» wrote Karl Brauer, publisher at Kelley Blue Book and Autotrader. He cited a production increase never achieved by any automaker before (400,000 Model 3s in two thousand eighteen from only about 35,000 in 2017), a relatively petite number of dealers and service centers, and less durability testing than all previous high-volume vehicle.
Once the Model three clears these hurdles, it must then find at least as many people willing to buy its car ever year that it now has in its entire backlog. «This is very unlikely in the US market anytime soon,» warns Sam Abuelsamid of the consulting rigid Navigant. With the car market demonstrating signs of softening, analysts predict US car sales will plateau over the next decade, perhaps even declining by about 15%, potentially dragging down EVs with it. Tesla, with only three models, must expand its stable at the same time it`s ramping production and fighting market headwinds.
But advocates say EV market growth will defy the larger market trends. EV sales spiked 40% last year over 2015, picking up from a 32% annual growth rate over the last five years. The Union of Worried Scientists estimates if the trend resumes, 10% of all US cars will be fully electrical by 2025. To do this, carmakers will have to sell and market their EVs just like they do their conventional models–something that has not generally been done. Until now, EVs have largely been compliance cars: vehicles sold and marketed (half-heartedly) by big automakers primarily to meet fleet emission regulations in the US and abroad.
That`s switching as more than a dozen fresh EV models are set to debut by 2020, rivaling head to head with conventional cars on style and spectacle. Rebecca Lindland, an automotive analyst for Kelley Blue Book, says Tesla has a clear advantage: people buy Teslas because of the brand, not because they are EVs.
«People have an emotional response to Tesla, but not necessarily to Leaf, Bolt, and other models» said Lindland in an interview (she has a deposit on a Model Three). «People are buying into [Musk`s] mission. On some level, it`s to save the world, and he has a product to back it up as well.»
That`s helped by the fact that Tesla is far and away the most visible EV brand. Analytics and data visualization stiff Quid examined Three,142 US news articles on electrified vehicles in 2017. It found that Tesla was mentioned in coverage across almost every major EV topic, and appeared in about twice the number articles compared to its nearest competitor, the Chevy Bolt.
Whether that`s enough to produce Tesla enough market share is an open question. «Is it doable?» says Lindland. «Absolutely.» Toyota, for example, sells more than 250,000 cars per month in the US. But competition will be fierce. BMW will release two fresh electrical models by 2020, and is accelerating its electric-car effort across its entire lineup. Mercedes plans to launch four EVs by 2018. Volvo will go all-electric by 2019. The Chevrolet Bolt is already on the road. Prices on EVs will go down at the same time that gas prices remain low. Even when the total cost of ownership for EVs falls below that of conventional cars (expected to happen in the next few years), a slightly higher sticker price may deter many buyers, argues Abuelsamid at Navigant. «It`s going to be rough for mainstream consumers to make the hop until affordability gets much better,» he wrote.
But the thickest barrier to selling Model 3s to the masses? It may just be knowing about them, reports Elektrek. A latest survey of Two,500 American found that 60% were still «unaware of electrical cars,» eclipsing concerns such as range or charging station availability. Here, even Musk`s showmanship may not be enough to stir the market. The industry as a entire will need to find a sales strategy that equates electrical cars as something suitable for any car buyer. Once buyers see an electrified vehicle not as a different type of car, but as a better one, then the market for EV can truly take off.
Tesla s Model Trio: The competition for Elon Musk s fresh electrical car will not come from other electrified vehicles
Tesla’s fattest competition for the Model three will not come from other electrified vehicles
Share
Tesla says more than one million people will be buying its electrical cars annually by 2020, many of them the Model three arriving on July 28. Given today`s electrical vehicle (EV) market, that destination is still a long way off.
Tho’ it gets talked up a lot, the EV market has yet to launch. Sales of electrified cars represent just 1% of the record 17.55 million cars sold last year in the US. GM`s electrified flagship, the Chevy Bolt, hasn`t seen spectacular sales despite sunny reviews (GM announced it was pausing factory production this summer to help clear inventory off its lots). Other models aren`t exactly driving themselves off the lot either.
Despite this, Tesla is undeniably on top. The company`s Model S sedans and Model X SUVs accounted for more than half of the EV market in the US in 2016, more than the next twelve models combined. Tesla itself is one of the world`s most valuable carmakers just fourteen years after its founding as a Silicon Valley startup.
This might seem like unalloyed good news for Tesla, but it`s not. For CEO Elon Musk, the competition isn`t other EVs; it`s gasoline engines. Tesla needs to take on the conventional car market to sustain, and it needs buyers to defect en masse from fossil fuels. That`s not happening, yet.
The launch of the Model Trio, the company`s very first mass-market electrified vehicle, on July twenty eight will mark the beginning (or perhaps the end) of Musk`s quest to produce an affordable, superior EV to the world`s driveways and highways. The $35,000 electrical vehicle (before incentives) has stirred up a madness of interest since Tesla announced it in 2014, and more than 375,000 people forked over a $1,000 deposit to get on a waiting list for the car.
Tesla must find a way to sell cars to drivers who still view electrical vehicles with suspicion or indifference, or it will falter under the cargo of its costly (and mostly profit-less) expansion. Until recently, Musk had the breeze at his back. The company`s stock price soared (too much, Musk has asserted), and production numbers were back on track after some bumpy years. But in July, manufacturing delays arose. Skittish investors commenced to sell, and Tesla`s market cap, once eclipsing every other carmaker, was sent back to 2nd place, just behind GM. Its stock shed more than $Ten billion in market value over two weeks from a June twenty three peak of $63 billion. Now, with all eyes on the Model Three, critics say Tesla may stall out.
«Elon Musk likes making history, which is good because he`ll have to accomplish several unprecedented feats to pull off a successful Model three launch,» wrote Karl Brauer, publisher at Kelley Blue Book and Autotrader. He cited a production increase never achieved by any automaker before (400,000 Model 3s in two thousand eighteen from only about 35,000 in 2017), a relatively puny number of dealers and service centers, and less durability testing than all previous high-volume vehicle.
Once the Model three clears these hurdles, it must then find at least as many people willing to buy its car ever year that it now has in its entire backlog. «This is very unlikely in the US market anytime soon,» warns Sam Abuelsamid of the consulting rock hard Navigant. With the car market showcasing signs of softening, analysts predict US car sales will plateau over the next decade, perhaps even declining by about 15%, potentially dragging down EVs with it. Tesla, with only three models, must expand its stable at the same time it`s ramping production and fighting market headwinds.
But advocates say EV market growth will defy the larger market trends. EV sales spiked 40% last year over 2015, picking up from a 32% annual growth rate over the last five years. The Union of Worried Scientists estimates if the trend resumes, 10% of all US cars will be fully electrical by 2025. To do this, carmakers will have to sell and market their EVs just like they do their conventional models–something that has not generally been done. Until now, EVs have largely been compliance cars: vehicles sold and marketed (half-heartedly) by big automakers primarily to meet fleet emission regulations in the US and abroad.
That`s switching as more than a dozen fresh EV models are set to debut by 2020, rivaling head to head with conventional cars on style and spectacle. Rebecca Lindland, an automotive analyst for Kelley Blue Book, says Tesla has a clear advantage: people buy Teslas because of the brand, not because they are EVs.
«People have an emotional response to Tesla, but not necessarily to Leaf, Bolt, and other models» said Lindland in an interview (she has a deposit on a Model Trio). «People are buying into [Musk`s] mission. On some level, it`s to save the world, and he has a product to back it up as well.»
That`s helped by the fact that Tesla is far and away the most visible EV brand. Analytics and data visualization stiff Quid examined Three,142 US news articles on electrical vehicles in 2017. It found that Tesla was mentioned in coverage across almost every major EV topic, and appeared in about twice the number articles compared to its nearest competitor, the Chevy Bolt.
Whether that`s enough to supply Tesla enough market share is an open question. «Is it doable?» says Lindland. «Absolutely.» Toyota, for example, sells more than 250,000 cars per month in the US. But competition will be fierce. BMW will release two fresh electrical models by 2020, and is accelerating its electric-car effort across its entire lineup. Mercedes plans to launch four EVs by 2018. Volvo will go all-electric by 2019. The Chevrolet Bolt is already on the road. Prices on EVs will go down at the same time that gas prices remain low. Even when the total cost of ownership for EVs falls below that of conventional cars (expected to happen in the next few years), a slightly higher sticker price may deter many buyers, argues Abuelsamid at Navigant. «It`s going to be harsh for mainstream consumers to make the hop until affordability gets much better,» he wrote.
But the thickest barrier to selling Model 3s to the masses? It may just be knowing about them, reports Elektrek. A latest survey of Two,500 American found that 60% were still «unaware of electrified cars,» eclipsing concerns such as range or charging station availability. Here, even Musk`s showmanship may not be enough to stir the market. The industry as a entire will need to find a sales strategy that equates electrical cars as something suitable for any car buyer. Once buyers see an electrified vehicle not as a different type of car, but as a better one, then the market for EV can truly take off.
Tesla s Model Three: The competition for Elon Musk s fresh electrical car will not come from other electrical vehicles
Tesla’s largest competition for the Model three will not come from other electrical vehicles
Share
Tesla says more than one million people will be buying its electrified cars annually by 2020, many of them the Model three arriving on July 28. Given today`s electrical vehicle (EV) market, that destination is still a long way off.
Tho’ it gets talked up a lot, the EV market has yet to launch. Sales of electrified cars represent just 1% of the record 17.55 million cars sold last year in the US. GM`s electrified flagship, the Chevy Bolt, hasn`t seen spectacular sales despite sunny reviews (GM announced it was pausing factory production this summer to help clear inventory off its lots). Other models aren`t exactly driving themselves off the lot either.
Despite this, Tesla is undeniably on top. The company`s Model S sedans and Model X SUVs accounted for more than half of the EV market in the US in 2016, more than the next twelve models combined. Tesla itself is one of the world`s most valuable carmakers just fourteen years after its founding as a Silicon Valley startup.
This might seem like unalloyed good news for Tesla, but it`s not. For CEO Elon Musk, the competition isn`t other EVs; it`s gasoline engines. Tesla needs to take on the conventional car market to get through, and it needs buyers to defect en masse from fossil fuels. That`s not happening, yet.
The launch of the Model Trio, the company`s very first mass-market electrified vehicle, on July twenty eight will mark the beginning (or perhaps the end) of Musk`s quest to supply an affordable, superior EV to the world`s driveways and highways. The $35,000 electrified vehicle (before incentives) has stirred up a madness of interest since Tesla announced it in 2014, and more than 375,000 people forked over a $1,000 deposit to get on a waiting list for the car.
Tesla must find a way to sell cars to drivers who still view electrical vehicles with suspicion or indifference, or it will falter under the cargo of its costly (and mostly profit-less) expansion. Until recently, Musk had the breeze at his back. The company`s stock price soared (too much, Musk has asserted), and production numbers were back on track after some bumpy years. But in July, manufacturing delays arose. Skittish investors commenced to sell, and Tesla`s market cap, once eclipsing every other carmaker, was sent back to 2nd place, just behind GM. Its stock shed more than $Ten billion in market value over two weeks from a June twenty three peak of $63 billion. Now, with all eyes on the Model Trio, critics say Tesla may stall out.
«Elon Musk likes making history, which is good because he`ll have to accomplish several unprecedented feats to pull off a successful Model three launch,» wrote Karl Brauer, publisher at Kelley Blue Book and Autotrader. He cited a production increase never achieved by any automaker before (400,000 Model 3s in two thousand eighteen from only about 35,000 in 2017), a relatively petite number of dealers and service centers, and less durability testing than all previous high-volume vehicle.
Once the Model three clears these hurdles, it must then find at least as many people willing to buy its car ever year that it now has in its entire backlog. «This is very unlikely in the US market anytime soon,» warns Sam Abuelsamid of the consulting stiff Navigant. With the car market demonstrating signs of softening, analysts predict US car sales will plateau over the next decade, perhaps even declining by about 15%, potentially dragging down EVs with it. Tesla, with only three models, must expand its stable at the same time it`s ramping production and fighting market headwinds.
But advocates say EV market growth will defy the larger market trends. EV sales spiked 40% last year over 2015, picking up from a 32% annual growth rate over the last five years. The Union of Worried Scientists estimates if the trend proceeds, 10% of all US cars will be fully electrified by 2025. To do this, carmakers will have to sell and market their EVs just like they do their conventional models–something that has not generally been done. Until now, EVs have largely been compliance cars: vehicles sold and marketed (half-heartedly) by big automakers primarily to meet fleet emission regulations in the US and abroad.
That`s switching as more than a dozen fresh EV models are set to debut by 2020, contesting head to head with conventional cars on style and spectacle. Rebecca Lindland, an automotive analyst for Kelley Blue Book, says Tesla has a clear advantage: people buy Teslas because of the brand, not because they are EVs.
«People have an emotional response to Tesla, but not necessarily to Leaf, Bolt, and other models» said Lindland in an interview (she has a deposit on a Model Three). «People are buying into [Musk`s] mission. On some level, it`s to save the world, and he has a product to back it up as well.»
That`s helped by the fact that Tesla is far and away the most visible EV brand. Analytics and data visualization rigid Quid examined Trio,142 US news articles on electrical vehicles in 2017. It found that Tesla was mentioned in coverage across almost every major EV topic, and appeared in about twice the number articles compared to its nearest competitor, the Chevy Bolt.
Whether that`s enough to produce Tesla enough market share is an open question. «Is it doable?» says Lindland. «Absolutely.» Toyota, for example, sells more than 250,000 cars per month in the US. But competition will be fierce. BMW will release two fresh electrical models by 2020, and is accelerating its electric-car effort across its entire lineup. Mercedes plans to launch four EVs by 2018. Volvo will go all-electric by 2019. The Chevrolet Bolt is already on the road. Prices on EVs will go down at the same time that gas prices remain low. Even when the total cost of ownership for EVs falls below that of conventional cars (expected to happen in the next few years), a slightly higher sticker price may deter many buyers, argues Abuelsamid at Navigant. «It`s going to be rough for mainstream consumers to make the leap until affordability gets much better,» he wrote.
But the largest barrier to selling Model 3s to the masses? It may just be knowing about them, reports Elektrek. A latest survey of Two,500 American found that 60% were still «unaware of electrified cars,» eclipsing concerns such as range or charging station availability. Here, even Musk`s showmanship may not be enough to budge the market. The industry as a entire will need to find a sales strategy that equates electrified cars as something suitable for any car buyer. Once buyers see an electrical vehicle not as a different type of car, but as a better one, then the market for EV can truly take off.
Tesla s Model Trio: The competition for Elon Musk s fresh electrified car will not come from other electrical vehicles
Tesla’s thickest competition for the Model three will not come from other electrified vehicles
Share
Tesla says more than one million people will be buying its electrified cars annually by 2020, many of them the Model three arriving on July 28. Given today`s electrified vehicle (EV) market, that destination is still a long way off.
Tho’ it gets talked up a lot, the EV market has yet to launch. Sales of electrified cars represent just 1% of the record 17.55 million cars sold last year in the US. GM`s electrified flagship, the Chevy Bolt, hasn`t seen spectacular sales despite sunny reviews (GM announced it was pausing factory production this summer to help clear inventory off its lots). Other models aren`t exactly driving themselves off the lot either.
Despite this, Tesla is undeniably on top. The company`s Model S sedans and Model X SUVs accounted for more than half of the EV market in the US in 2016, more than the next twelve models combined. Tesla itself is one of the world`s most valuable carmakers just fourteen years after its founding as a Silicon Valley startup.
This might seem like unalloyed good news for Tesla, but it`s not. For CEO Elon Musk, the competition isn`t other EVs; it`s gasoline engines. Tesla needs to take on the conventional car market to get through, and it needs buyers to defect en masse from fossil fuels. That`s not happening, yet.
The launch of the Model Trio, the company`s very first mass-market electrical vehicle, on July twenty eight will mark the beginning (or perhaps the end) of Musk`s quest to supply an affordable, superior EV to the world`s driveways and highways. The $35,000 electrical vehicle (before incentives) has stirred up a madness of interest since Tesla announced it in 2014, and more than 375,000 people forked over a $1,000 deposit to get on a waiting list for the car.
Tesla must find a way to sell cars to drivers who still view electrified vehicles with suspicion or indifference, or it will falter under the cargo of its costly (and mostly profit-less) expansion. Until recently, Musk had the breeze at his back. The company`s stock price soared (too much, Musk has asserted), and production numbers were back on track after some bumpy years. But in July, manufacturing delays arose. Skittish investors embarked to sell, and Tesla`s market cap, once eclipsing every other carmaker, was sent back to 2nd place, just behind GM. Its stock shed more than $Ten billion in market value over two weeks from a June twenty three peak of $63 billion. Now, with all eyes on the Model Trio, critics say Tesla may stall out.
«Elon Musk likes making history, which is good because he`ll have to accomplish several unprecedented feats to pull off a successful Model three launch,» wrote Karl Brauer, publisher at Kelley Blue Book and Autotrader. He cited a production increase never achieved by any automaker before (400,000 Model 3s in two thousand eighteen from only about 35,000 in 2017), a relatively puny number of dealers and service centers, and less durability testing than all previous high-volume vehicle.
Once the Model three clears these hurdles, it must then find at least as many people willing to buy its car ever year that it now has in its entire backlog. «This is very unlikely in the US market anytime soon,» warns Sam Abuelsamid of the consulting rock hard Navigant. With the car market demonstrating signs of softening, analysts predict US car sales will plateau over the next decade, perhaps even declining by about 15%, potentially dragging down EVs with it. Tesla, with only three models, must expand its stable at the same time it`s ramping production and fighting market headwinds.
But advocates say EV market growth will defy the larger market trends. EV sales spiked 40% last year over 2015, picking up from a 32% annual growth rate over the last five years. The Union of Worried Scientists estimates if the trend resumes, 10% of all US cars will be fully electrical by 2025. To do this, carmakers will have to sell and market their EVs just like they do their conventional models–something that has not generally been done. Until now, EVs have largely been compliance cars: vehicles sold and marketed (half-heartedly) by big automakers primarily to meet fleet emission regulations in the US and abroad.
That`s switching as more than a dozen fresh EV models are set to debut by 2020, contesting head to head with conventional cars on style and spectacle. Rebecca Lindland, an automotive analyst for Kelley Blue Book, says Tesla has a clear advantage: people buy Teslas because of the brand, not because they are EVs.
«People have an emotional response to Tesla, but not necessarily to Leaf, Bolt, and other models» said Lindland in an interview (she has a deposit on a Model Trio). «People are buying into [Musk`s] mission. On some level, it`s to save the world, and he has a product to back it up as well.»
That`s helped by the fact that Tesla is far and away the most visible EV brand. Analytics and data visualization rock-hard Quid examined Trio,142 US news articles on electrical vehicles in 2017. It found that Tesla was mentioned in coverage across almost every major EV topic, and appeared in about twice the number articles compared to its nearest competitor, the Chevy Bolt.
Whether that`s enough to supply Tesla enough market share is an open question. «Is it doable?» says Lindland. «Absolutely.» Toyota, for example, sells more than 250,000 cars per month in the US. But competition will be fierce. BMW will release two fresh electrified models by 2020, and is accelerating its electric-car effort across its entire lineup. Mercedes plans to launch four EVs by 2018. Volvo will go all-electric by 2019. The Chevrolet Bolt is already on the road. Prices on EVs will go down at the same time that gas prices remain low. Even when the total cost of ownership for EVs falls below that of conventional cars (expected to happen in the next few years), a slightly higher sticker price may deter many buyers, argues Abuelsamid at Navigant. «It`s going to be rough for mainstream consumers to make the leap until affordability gets much better,» he wrote.
But the fattest barrier to selling Model 3s to the masses? It may just be knowing about them, reports Elektrek. A latest survey of Two,500 American found that 60% were still «unaware of electrical cars,» eclipsing concerns such as range or charging station availability. Here, even Musk`s showmanship may not be enough to budge the market. The industry as a entire will need to find a sales strategy that equates electrified cars as something suitable for any car buyer. Once buyers see an electrical vehicle not as a different type of car, but as a better one, then the market for EV can truly take off.
Tesla s Model Three: The competition for Elon Musk s fresh electrical car will not come from other electrified vehicles
Tesla’s largest competition for the Model three will not come from other electrical vehicles
Share
Tesla says more than one million people will be buying its electrified cars annually by 2020, many of them the Model three arriving on July 28. Given today`s electrical vehicle (EV) market, that destination is still a long way off.
Tho’ it gets talked up a lot, the EV market has yet to launch. Sales of electrified cars represent just 1% of the record 17.55 million cars sold last year in the US. GM`s electrified flagship, the Chevy Bolt, hasn`t seen spectacular sales despite sunny reviews (GM announced it was pausing factory production this summer to help clear inventory off its lots). Other models aren`t exactly driving themselves off the lot either.
Despite this, Tesla is undeniably on top. The company`s Model S sedans and Model X SUVs accounted for more than half of the EV market in the US in 2016, more than the next twelve models combined. Tesla itself is one of the world`s most valuable carmakers just fourteen years after its founding as a Silicon Valley startup.
This might seem like unalloyed good news for Tesla, but it`s not. For CEO Elon Musk, the competition isn`t other EVs; it`s gasoline engines. Tesla needs to take on the conventional car market to get through, and it needs buyers to defect en masse from fossil fuels. That`s not happening, yet.
The launch of the Model Trio, the company`s very first mass-market electrical vehicle, on July twenty eight will mark the beginning (or perhaps the end) of Musk`s quest to supply an affordable, superior EV to the world`s driveways and highways. The $35,000 electrical vehicle (before incentives) has stirred up a madness of interest since Tesla announced it in 2014, and more than 375,000 people forked over a $1,000 deposit to get on a waiting list for the car.
Tesla must find a way to sell cars to drivers who still view electrical vehicles with suspicion or indifference, or it will falter under the cargo of its costly (and mostly profit-less) expansion. Until recently, Musk had the breeze at his back. The company`s stock price soared (too much, Musk has asserted), and production numbers were back on track after some bumpy years. But in July, manufacturing delays arose. Skittish investors embarked to sell, and Tesla`s market cap, once eclipsing every other carmaker, was sent back to 2nd place, just behind GM. Its stock shed more than $Ten billion in market value over two weeks from a June twenty three peak of $63 billion. Now, with all eyes on the Model Trio, critics say Tesla may stall out.
«Elon Musk likes making history, which is good because he`ll have to accomplish several unprecedented feats to pull off a successful Model three launch,» wrote Karl Brauer, publisher at Kelley Blue Book and Autotrader. He cited a production increase never achieved by any automaker before (400,000 Model 3s in two thousand eighteen from only about 35,000 in 2017), a relatively petite number of dealers and service centers, and less durability testing than all previous high-volume vehicle.
Once the Model three clears these hurdles, it must then find at least as many people willing to buy its car ever year that it now has in its entire backlog. «This is very unlikely in the US market anytime soon,» warns Sam Abuelsamid of the consulting rock hard Navigant. With the car market displaying signs of softening, analysts predict US car sales will plateau over the next decade, perhaps even declining by about 15%, potentially dragging down EVs with it. Tesla, with only three models, must expand its stable at the same time it`s ramping production and fighting market headwinds.
But advocates say EV market growth will defy the larger market trends. EV sales spiked 40% last year over 2015, picking up from a 32% annual growth rate over the last five years. The Union of Worried Scientists estimates if the trend proceeds, 10% of all US cars will be fully electrified by 2025. To do this, carmakers will have to sell and market their EVs just like they do their conventional models–something that has not generally been done. Until now, EVs have largely been compliance cars: vehicles sold and marketed (half-heartedly) by big automakers primarily to meet fleet emission regulations in the US and abroad.
That`s switching as more than a dozen fresh EV models are set to debut by 2020, challenging head to head with conventional cars on style and spectacle. Rebecca Lindland, an automotive analyst for Kelley Blue Book, says Tesla has a clear advantage: people buy Teslas because of the brand, not because they are EVs.
«People have an emotional response to Tesla, but not necessarily to Leaf, Bolt, and other models» said Lindland in an interview (she has a deposit on a Model Trio). «People are buying into [Musk`s] mission. On some level, it`s to save the world, and he has a product to back it up as well.»
That`s helped by the fact that Tesla is far and away the most visible EV brand. Analytics and data visualization rigid Quid examined Three,142 US news articles on electrified vehicles in 2017. It found that Tesla was mentioned in coverage across almost every major EV topic, and appeared in about twice the number articles compared to its nearest competitor, the Chevy Bolt.
Whether that`s enough to produce Tesla enough market share is an open question. «Is it doable?» says Lindland. «Absolutely.» Toyota, for example, sells more than 250,000 cars per month in the US. But competition will be fierce. BMW will release two fresh electrified models by 2020, and is accelerating its electric-car effort across its entire lineup. Mercedes plans to launch four EVs by 2018. Volvo will go all-electric by 2019. The Chevrolet Bolt is already on the road. Prices on EVs will go down at the same time that gas prices remain low. Even when the total cost of ownership for EVs falls below that of conventional cars (expected to happen in the next few years), a slightly higher sticker price may deter many buyers, argues Abuelsamid at Navigant. «It`s going to be raunchy for mainstream consumers to make the leap until affordability gets much better,» he wrote.
But the fattest barrier to selling Model 3s to the masses? It may just be knowing about them, reports Elektrek. A latest survey of Two,500 American found that 60% were still «unaware of electrified cars,» eclipsing concerns such as range or charging station availability. Here, even Musk`s showmanship may not be enough to budge the market. The industry as a entire will need to find a sales strategy that equates electrical cars as something suitable for any car buyer. Once buyers see an electrified vehicle not as a different type of car, but as a better one, then the market for EV can truly take off.
Tesla s Model Trio: The competition for Elon Musk s fresh electrical car will not come from other electrified vehicles
Tesla’s largest competition for the Model three will not come from other electrical vehicles
Share
Tesla says more than one million people will be buying its electrified cars annually by 2020, many of them the Model three arriving on July 28. Given today`s electrical vehicle (EV) market, that destination is still a long way off.
Tho’ it gets talked up a lot, the EV market has yet to launch. Sales of electrical cars represent just 1% of the record 17.55 million cars sold last year in the US. GM`s electrified flagship, the Chevy Bolt, hasn`t seen spectacular sales despite sunny reviews (GM announced it was pausing factory production this summer to help clear inventory off its lots). Other models aren`t exactly driving themselves off the lot either.
Despite this, Tesla is undeniably on top. The company`s Model S sedans and Model X SUVs accounted for more than half of the EV market in the US in 2016, more than the next twelve models combined. Tesla itself is one of the world`s most valuable carmakers just fourteen years after its founding as a Silicon Valley startup.
This might seem like unalloyed good news for Tesla, but it`s not. For CEO Elon Musk, the competition isn`t other EVs; it`s gasoline engines. Tesla needs to take on the conventional car market to get through, and it needs buyers to defect en masse from fossil fuels. That`s not happening, yet.
The launch of the Model Trio, the company`s very first mass-market electrical vehicle, on July twenty eight will mark the beginning (or perhaps the end) of Musk`s quest to produce an affordable, superior EV to the world`s driveways and highways. The $35,000 electrical vehicle (before incentives) has stirred up a madness of interest since Tesla announced it in 2014, and more than 375,000 people forked over a $1,000 deposit to get on a waiting list for the car.
Tesla must find a way to sell cars to drivers who still view electrified vehicles with suspicion or indifference, or it will falter under the cargo of its costly (and mostly profit-less) expansion. Until recently, Musk had the breeze at his back. The company`s stock price soared (too much, Musk has asserted), and production numbers were back on track after some bumpy years. But in July, manufacturing delays arose. Skittish investors commenced to sell, and Tesla`s market cap, once eclipsing every other carmaker, was sent back to 2nd place, just behind GM. Its stock shed more than $Ten billion in market value over two weeks from a June twenty three peak of $63 billion. Now, with all eyes on the Model Trio, critics say Tesla may stall out.
«Elon Musk likes making history, which is good because he`ll have to accomplish several unprecedented feats to pull off a successful Model three launch,» wrote Karl Brauer, publisher at Kelley Blue Book and Autotrader. He cited a production increase never achieved by any automaker before (400,000 Model 3s in two thousand eighteen from only about 35,000 in 2017), a relatively petite number of dealers and service centers, and less durability testing than all previous high-volume vehicle.
Once the Model three clears these hurdles, it must then find at least as many people willing to buy its car ever year that it now has in its entire backlog. «This is very unlikely in the US market anytime soon,» warns Sam Abuelsamid of the consulting rock-hard Navigant. With the car market demonstrating signs of softening, analysts predict US car sales will plateau over the next decade, perhaps even declining by about 15%, potentially dragging down EVs with it. Tesla, with only three models, must expand its stable at the same time it`s ramping production and fighting market headwinds.
But advocates say EV market growth will defy the larger market trends. EV sales spiked 40% last year over 2015, picking up from a 32% annual growth rate over the last five years. The Union of Worried Scientists estimates if the trend resumes, 10% of all US cars will be fully electrified by 2025. To do this, carmakers will have to sell and market their EVs just like they do their conventional models–something that has not generally been done. Until now, EVs have largely been compliance cars: vehicles sold and marketed (half-heartedly) by big automakers primarily to meet fleet emission regulations in the US and abroad.
That`s switching as more than a dozen fresh EV models are set to debut by 2020, contesting head to head with conventional cars on style and spectacle. Rebecca Lindland, an automotive analyst for Kelley Blue Book, says Tesla has a clear advantage: people buy Teslas because of the brand, not because they are EVs.
«People have an emotional response to Tesla, but not necessarily to Leaf, Bolt, and other models» said Lindland in an interview (she has a deposit on a Model Trio). «People are buying into [Musk`s] mission. On some level, it`s to save the world, and he has a product to back it up as well.»
That`s helped by the fact that Tesla is far and away the most visible EV brand. Analytics and data visualization stiff Quid examined Trio,142 US news articles on electrical vehicles in 2017. It found that Tesla was mentioned in coverage across almost every major EV topic, and appeared in about twice the number articles compared to its nearest competitor, the Chevy Bolt.
Whether that`s enough to supply Tesla enough market share is an open question. «Is it doable?» says Lindland. «Absolutely.» Toyota, for example, sells more than 250,000 cars per month in the US. But competition will be fierce. BMW will release two fresh electrified models by 2020, and is accelerating its electric-car effort across its entire lineup. Mercedes plans to launch four EVs by 2018. Volvo will go all-electric by 2019. The Chevrolet Bolt is already on the road. Prices on EVs will go down at the same time that gas prices remain low. Even when the total cost of ownership for EVs falls below that of conventional cars (expected to happen in the next few years), a slightly higher sticker price may deter many buyers, argues Abuelsamid at Navigant. «It`s going to be harsh for mainstream consumers to make the leap until affordability gets much better,» he wrote.
But the largest barrier to selling Model 3s to the masses? It may just be knowing about them, reports Elektrek. A latest survey of Two,500 American found that 60% were still «unaware of electrified cars,» eclipsing concerns such as range or charging station availability. Here, even Musk`s showmanship may not be enough to budge the market. The industry as a entire will need to find a sales strategy that equates electrified cars as something suitable for any car buyer. Once buyers see an electrified vehicle not as a different type of car, but as a better one, then the market for EV can truly take off.
Tesla s Model Trio: The competition for Elon Musk s fresh electrical car will not come from other electrified vehicles
Tesla’s fattest competition for the Model three will not come from other electrical vehicles
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Tesla says more than one million people will be buying its electrical cars annually by 2020, many of them the Model three arriving on July 28. Given today`s electrical vehicle (EV) market, that destination is still a long way off.
Tho’ it gets talked up a lot, the EV market has yet to launch. Sales of electrified cars represent just 1% of the record 17.55 million cars sold last year in the US. GM`s electrical flagship, the Chevy Bolt, hasn`t seen spectacular sales despite sunny reviews (GM announced it was pausing factory production this summer to help clear inventory off its lots). Other models aren`t exactly driving themselves off the lot either.
Despite this, Tesla is undeniably on top. The company`s Model S sedans and Model X SUVs accounted for more than half of the EV market in the US in 2016, more than the next twelve models combined. Tesla itself is one of the world`s most valuable carmakers just fourteen years after its founding as a Silicon Valley startup.
This might seem like unalloyed good news for Tesla, but it`s not. For CEO Elon Musk, the competition isn`t other EVs; it`s gasoline engines. Tesla needs to take on the conventional car market to get through, and it needs buyers to defect en masse from fossil fuels. That`s not happening, yet.
The launch of the Model Trio, the company`s very first mass-market electrical vehicle, on July twenty eight will mark the beginning (or perhaps the end) of Musk`s quest to supply an affordable, superior EV to the world`s driveways and highways. The $35,000 electrical vehicle (before incentives) has stirred up a madness of interest since Tesla announced it in 2014, and more than 375,000 people forked over a $1,000 deposit to get on a waiting list for the car.
Tesla must find a way to sell cars to drivers who still view electrical vehicles with suspicion or indifference, or it will falter under the cargo of its costly (and mostly profit-less) expansion. Until recently, Musk had the breeze at his back. The company`s stock price soared (too much, Musk has asserted), and production numbers were back on track after some bumpy years. But in July, manufacturing delays arose. Skittish investors began to sell, and Tesla`s market cap, once eclipsing every other carmaker, was sent back to 2nd place, just behind GM. Its stock shed more than $Ten billion in market value over two weeks from a June twenty three peak of $63 billion. Now, with all eyes on the Model Three, critics say Tesla may stall out.
«Elon Musk likes making history, which is good because he`ll have to accomplish several unprecedented feats to pull off a successful Model three launch,» wrote Karl Brauer, publisher at Kelley Blue Book and Autotrader. He cited a production increase never achieved by any automaker before (400,000 Model 3s in two thousand eighteen from only about 35,000 in 2017), a relatively petite number of dealers and service centers, and less durability testing than all previous high-volume vehicle.
Once the Model three clears these hurdles, it must then find at least as many people willing to buy its car ever year that it now has in its entire backlog. «This is very unlikely in the US market anytime soon,» warns Sam Abuelsamid of the consulting rock-hard Navigant. With the car market showcasing signs of softening, analysts predict US car sales will plateau over the next decade, perhaps even declining by about 15%, potentially dragging down EVs with it. Tesla, with only three models, must expand its stable at the same time it`s ramping production and fighting market headwinds.
But advocates say EV market growth will defy the larger market trends. EV sales spiked 40% last year over 2015, picking up from a 32% annual growth rate over the last five years. The Union of Worried Scientists estimates if the trend resumes, 10% of all US cars will be fully electrical by 2025. To do this, carmakers will have to sell and market their EVs just like they do their conventional models–something that has not generally been done. Until now, EVs have largely been compliance cars: vehicles sold and marketed (half-heartedly) by big automakers primarily to meet fleet emission regulations in the US and abroad.
That`s switching as more than a dozen fresh EV models are set to debut by 2020, rivaling head to head with conventional cars on style and spectacle. Rebecca Lindland, an automotive analyst for Kelley Blue Book, says Tesla has a clear advantage: people buy Teslas because of the brand, not because they are EVs.
«People have an emotional response to Tesla, but not necessarily to Leaf, Bolt, and other models» said Lindland in an interview (she has a deposit on a Model Trio). «People are buying into [Musk`s] mission. On some level, it`s to save the world, and he has a product to back it up as well.»
That`s helped by the fact that Tesla is far and away the most visible EV brand. Analytics and data visualization stiff Quid examined Trio,142 US news articles on electrified vehicles in 2017. It found that Tesla was mentioned in coverage across almost every major EV topic, and appeared in about twice the number articles compared to its nearest competitor, the Chevy Bolt.
Whether that`s enough to supply Tesla enough market share is an open question. «Is it doable?» says Lindland. «Absolutely.» Toyota, for example, sells more than 250,000 cars per month in the US. But competition will be fierce. BMW will release two fresh electrical models by 2020, and is accelerating its electric-car effort across its entire lineup. Mercedes plans to launch four EVs by 2018. Volvo will go all-electric by 2019. The Chevrolet Bolt is already on the road. Prices on EVs will go down at the same time that gas prices remain low. Even when the total cost of ownership for EVs falls below that of conventional cars (expected to happen in the next few years), a slightly higher sticker price may deter many buyers, argues Abuelsamid at Navigant. «It`s going to be rough for mainstream consumers to make the leap until affordability gets much better,» he wrote.
But the fattest barrier to selling Model 3s to the masses? It may just be knowing about them, reports Elektrek. A latest survey of Two,500 American found that 60% were still «unaware of electrical cars,» eclipsing concerns such as range or charging station availability. Here, even Musk`s showmanship may not be enough to budge the market. The industry as a entire will need to find a sales strategy that equates electrical cars as something suitable for any car buyer. Once buyers see an electrified vehicle not as a different type of car, but as a better one, then the market for EV can truly take off.