3 ms·

The Model S (my Model S anyway) is expensive not because it's in the same conspicuous luxury segment as the high end of the Benz or Porsche line, but because it

The Model S (my Model S anyway) is expensive not because it's in the same conspicuous luxury segment as the high end of the Benz or Porsche line, but because it has expensive batteries, and because Tesla is using me, at my expense and with my consent, to gain market experience. It's a product for early adopters. S class Benz products are not that. My presence as a customer in this imagined luxury car price point segment is temporary. When it comes time to replace this Model S, I'm counting on several mass-market EV brands competing with each other. If things keep going the the way they are now, Tesla will have a loyalty advantage in my next purchase choice. But that loyalty advantage probably won't be worth more than a few kilobucks. The Model S is definitely not a plutocratmobile. I really like it. I'm a total fanboy. But there's road noise, and the front seat doors aren't plutocrat-grade comfortable, and the radio, and , and , and. The market analysts putting it in the plutocrat segment based only on price are making a mistake. (Yeah, I know, first world problems. But I'm a proud early adopter. I also had a first-generation Honda Insight hybrid.)

adventured 9y ago
I think Tesla will eventually have to decide on a direction for the S, to drift higher or lower in its competitive target, in line with inevitable changes to tax credits. It'll be interesting to see if they try to move down to compete with the BMW 5 category over time. Or whether they attempt to push quality higher, raise prices and fully compete with the next tier up. The Model 3 is very clearly going to stay focused on competing with the BMW 3 (and equivalent from Mercedes et al.) over time. Perhaps Musk will push a new sedan into the mix eventually to more properly align with how the BMW 3, 5, 7 series is set up.
- cloudwalking 9y ago
  I think you're right, and I bet Tesla will try to compete with the 5 series/E class and not the 7/S. Model S won't have to come down in price very much to fit in with 5/E. Maybe it will lack fit and finish, but it will have much better acceleration and cargo room (and the Tesla brand, and the domestic badge). The Model S will remain pretty competitive in the market.

adventured 9y ago

I think Tesla will eventually have to decide on a direction for the S, to drift higher or lower in its competitive target, in line with inevitable changes to tax credits. It'll be interesting to see if they try to move down to compete with the BMW 5 category over time. Or whether they attempt to push quality higher, raise prices and fully compete with the next tier up. The Model 3 is very clearly going to stay focused on competing with the BMW 3 (and equivalent from Mercedes et al.) over time. Perhaps Musk will push a new sedan into the mix eventually to more properly align with how the BMW 3, 5, 7 series is set up.

cloudwalking 9y ago
I think you're right, and I bet Tesla will try to compete with the 5 series/E class and not the 7/S. Model S won't have to come down in price very much to fit in with 5/E. Maybe it will lack fit and finish, but it will have much better acceleration and cargo room (and the Tesla brand, and the domestic badge). The Model S will remain pretty competitive in the market.