Here’s some fapping material for the Tesla fanboys. Elon Musk’s brainchild is in the lead for the number one luxury car brand in the US for the first quarter of 2023.
Tesla’s early lead in January is a testament to the company’s ability to innovate and adapt to changing market conditions. With 49,917 new registrations, Tesla crushes its closest competitor, BMW, by a significant margin. This success can be attributed to a combination of factors, including price cuts to make the Model 3 and Y qualify for the new $7,500 federal tax credit Biden’s Inflation Reduction Act.
The big shocker here is Tesla had more registrations than Mercedes-Benz and Lexus combined. It shows that Tesla is not only competing with traditional luxury cars but is also the new 800lb gorilla in the room. All the more incredible is that Tesla’s lineup consists of only four vehicles.
Tesla’s continued growth in the U.S. market while its rivals remain mostly flat is a clear indication that the company has achieved what Malcome Gladwell dubbed the “Tipping Point.”
Gladwell’s book “The Tipping Point” explores how small actions at the right time, in the right place, and with the right people can create a tipping point for anything from a product to an idea to a trend. Gladwell defines a tipping point as “the moment of critical mass, the threshold, the boiling point”. The book seeks to explain and describe the “mysterious” sociological changes that mark everyday life. As Gladwell states: “Ideas and products and messages and behaviors spread as viruses do”.
Tesla’s idea of EVs with OTA updates, a charging network, and a reimagined dealer experience was years in the making. Adoption spanned over a decade, but when Elon Musk’s brainchild vision collided with gas prices, climate change, social unrest, and the vilification of “Legacy Auto,” Tesla reached the elusive tipping point and gain incredible notoriety (and market share) seemingly overnight.
It will be interesting to see if Tesla can maintain this momentum throughout the year and continue to dominate the luxury market. The company’s ability to capitalize on current EV trends and move thousands of long-in-tooth cars is an amazing feat! Over-the-air updates be damned, Tesla’s current model lineup is stale, to say the least. Here in Southern California though, buyers don’t seem to care, as there is a Model Y on Every. Single. Corner.
ElectifiedMag’s Take: For years, Mercedes Benz, BMW, and Lexus have had the US luxury car market in a hammerlock. These overseas companies have ruled the roost with many competitors trying (and failing) to dislodge them from the hearts of consumers. Now here comes Tesla and blows all of them into the weeds. It’s a story that has the makings of a biblical Hollywood movie, i.e., David (Musk) slays Goliath (Germany/Japan Inc.)
The irony of all this is Teslas do a match of the build quality of any of its rivals, and the 3 and Y especially have bland, Fisher-Price plastic interiors. We think sales will even out when newer EVs from a myriad of OEMs from around the world begin to occupy the luxury EV space. We’re huge fans of Elon Musk, but if you listen to his most ardent supporters, their vision of an emission-free future is one with Tesla monopolizing the global auto industry. Sorry, but we will need all the evil “legacy” automakers onboard if we want to end fossil fuels. For now, kudos to Tesla for trouncing the stuffy German and Japanese auto oligarchs. Couldn’t have happened to a nice bunch.