Quote:
Originally Posted by Sharp11
Perhaps, but the segment, especially in the 30-40k range is about to become very competitive - the new Bolt and a redesigned Leaf will be vying for consumers, and benefitting from the resources of large companies, where losses on particular models (up to $4K on Teslas??) can be absorbed.
I'm just wondering how long a small company can stay in "growth mode".
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Resources of large companies, yes. But what about the commitment?
I've said for a long time that if GM or VW or Ford put their mind to it, they could build a car that would basically put Tesla out of business. But they haven't put their mind to it, and it doesn't look like they will. Of the group, only VW has really hinted in this direction, and we'll see how much that comes to fruition--but it's far more vaporware at this point than the Model 3.
The Bolt and the (next gen) Leaf are important cars, but I think it's pretty clear that they aren't really "competition" for the Model 3. They are better than pure compliance cars, but at the end of the day they are hedges--cars made to test the waters of a new segment, cautiously, like dipping your toe in.
The Model 3, OTOH, is a car built by a company that's committed to the idea of electrification. Tesla understands the whole ecosystem here--that in addition to a long range, you need to give people:
1) A compelling reason to make the changes they need to make in their behavior to buy an electric car, and
2) A comprehensive charging infrastructure that makes switching as painless as possible.
To answer the first question, Tesla gives you two things:
a) A chance to feel like you are buying into a group effort to save the world, and
b) A car that's fast and handles well, so that even enthusiasts take note.
Now, you can quibble with how real the steak is behind the "save the world" sizzle. But from a marketing standpoint it's clearly part of Tesla's story, so much so that Musk leads with it every time he intros a new car. It's the company's defining ethos. Does GM have a defining ethos? Does VW?
And I haven't driven either a Model 3 or a Bolt yet, but I think we can make some predictions. If the Model 3 isn't *significantly* better in that respect than a Bolt, I will buy you a Model X.
So, TL;DR: Tesla is playing a different game than everyone else is.