A couple months ago Rambling Web noted that Porsche was breaking the mold for hybrid cars by developing a true hybrid super car - Porsche 918 Spyder Hybrid Blows Up Stereotypes. Yet the major question was whether the 918 Spyder would sell.
Well Tesla Motors, taking a different tact, is showing the an upscale electric car can sell quite well. According to 'Wall Streets Cheat Sheet,' Tesla's Model S is actually outselling BMW and Mercedes the competing cars in its class.
This is great news for the future of electric and hybrid cars. It shows that as the quality of these cars increases that demand will likely increase too. As 'Wall Streets Cheat Sheet' notes the success of the Model S opens the door for a more affordable model in the future.
Tesla’s Model S Is Shaming BMW and Mercedes
While Tesla faced huge criticisms about the Model S being too expensive, which would result in a stagnancy of demand, it appears the concerns were unfounded, and that the demand is leading the segment. Given the company’s limitations as a start-up with a product that has yet to become mainstream, these figures are especially impressive.Tesla Motors
Moreover, the Model S was never meant to be an affordable, mass market car; the company was never aiming to build the next GM Chevy (NYSE:GM) Volt or Nissan Leaf. The Model S was designed from the ground up as a luxury car, meant to compete with the likes of the 7 Series and A8.
The company’s business model suggests that as electric cars become more accepted, and concerns over range anxiety and other problems subside, the high cost of electric car technology will slope downward. And when that happens, Tesla will be ready and waiting with an entry-level, ballpark $30,000 model to market to the masses.