Taking on Tesla: Key Brand Insights To Power Your Sales

Tesla has been dominating the electric vehicle market, but it’s now positioning itself as a top contender in the premium vehicle sector as well. In a recent press release, Tesla touted its Model 3 as the best-selling passenger car in the U.S. (in terms of revenue for the latter half of 2018) and the best-selling premium vehicle in the U.S. for all of last year. So, as the brand continues to expand and produce, what advantages can you offer to help ensure continued loyalty from your current customers—and a competitive edge with first-time buyers?


To better understand why shoppers are choosing Tesla, and how other premium brands can effectively compete, AutoLoop recently surveyed 1,000 auto consumers. Given Tesla’s reported performance and technology, 53% of those with a household income of at least $75,000 said they would consider purchasing a model. To no one’s surprise, the most powerful factors influencing those decisions were fuel savings and the positive environmental impact. More specifically, Millennials and Generation-X consumers comprised the majority of those who make finding eco-friendly vehicle options a priority. 



Saving the planet vs. saving money
With Tesla, the environmental concern is curbed by concern over cost, though. Even for those with a household income of at least $75,000, the high sticker price is a major deterrent—and many consumers automatically associate the Tesla brand with extravagance already. It’s a valid perception, as the Model S starts at around $85,000. However, the Model 3 price continues to decrease (now starting at roughly $42,000), and consumers are noticing: 77% of those surveyed considered the Model 3 to be affordable.


More eco-friendly options to power sales
All this said, with electric vehicles on the rise and with climate concern becoming more of a mainstream issue, manufacturers and dealerships alike would do well to take cues from Tesla’s success to fuel their own. From a manufacturing standpoint, expanding the electric vehicle offerings can help drive competition with the Tesla brand: Audi just recently aired a commercial during the 2019 Super Bowl promising that one-third of all its new models would be electric by 2025. Several other brands, such as Mercedes-Benz and Porsche, have also released concepts of electric models with estimated production beginning as early as this year. Meanwhile, companies already offering EVs can focus on improvements.  For example, the comparably priced BMW i3 is available now but falls short in terms of driving range on a single charge.


Showcase specific advantages to capture buyer interest
From an individual retailer standpoint, stores can help offset the Tesla appeal by bringing their customer’s attention back to the advantages of their own models—along with the less-expensive price tag (if applicable). Particularly with Millennials and Generation X buyers, focusing on the many environmental benefits of hybrid vehicles, for instance, is smart. And offering gas perks as part of the vehicle purchase works to proactively address the need for fuel savings to help win over those prospective buyers.


As for the higher end, luxury dealers can emphasize the numerous advanced technology features of their latest vehicles, such as infotainment, semi-autonomous driving features, collision-avoidance systems, and much more. Today’s models provide virtually limitless options for consumers. And the truth is, if competing premium brands can offer more affordable, environmentally sound options complete with the latest intelligence and maximum driving range – all without sacrificing the eye-catching designs that attract buyers in the first place – Tesla may find itself in need of a recharge. 

Views: 14


You need to be a member of DealerELITE.net to add comments!

Join DealerELITE.net

Latest Activity

Cory Mosley posted a video

Online Sales Success Workshop - Tim Cox of CarNow

The super smart and hilarious Tim Cox joined me for a quick video chat about the state of the digital car business and some of the things he will be covering...
17 hours ago
Mike Esposito posted a blog post

Auto/Mate Integrates DMS with MacroFile Electronic Document Management System

Albany, N.Y. – May 22, 2019 – Auto/Mate Dealership Systems announced today it has successfully…See More
18 hours ago
Timmy D. James posted a blog post
18 hours ago
Mike theCarGuy Correra posted a video

The Importance of Doing Social Media the Right Way

DealerBuilt Account Manager Mike Correra explains why dealers should focus on the right things on social media for their presence to be effective.
18 hours ago
Damian Boudreaux posted a blog post

Value Your Company

We want you to be profitable and proud of what you do. We want you to have all the success that you…See More
Black Book posted a blog post

Stable Market Except for Luxury Vehicles

Welcome to this week's edition of Black Book Market Insights, with in-depth analysis of used car…See More
Cory Mosley posted videos
Walter McNulty posted a status
"If you are in need of any of our services please contact me today! www.pdsforyou.com"
John Sternal posted blog posts
Erik S. Nachbahr posted a blog post

Helion Technologies Becomes a CIS SecureSuite Member

Timonium, MD –­ May 21, 2019 –­ Helion Technologies today announced it has become a CIS…See More
Simon Hopes posted a blog post

3 Tips to Sell Luxury Cars on the Internet

Luxury cars is a consumer good present on the wish list of much of the population, currently the…See More
Walter McNulty posted a status
"Booking Staffed Events for June and July set your dates today. Call 443-521-6384"
Crystal Hartwell posted a blog post

Rplate, World’s First Digital License Plate and Winner of Best New Product Award, Featured at CONNECTIONS Conference May 21 - 23

Reviver demonstrates its award winning Rplate at Connected Car Corner, by InstallerNet, in San…See More
Bill Wittenmyer posted a video

Witt's Wise Words: There Are No Subs In Life

Bill Wittenmyer explains why life isn't a professional sport in which we can make substitutions in this episode of Witt's Wise Words.
Walter McNulty posted a status
"If you are looking for a Huge June call today to team up with Preferred Dealer Solutions"
Walter McNulty posted videos
Dave Anderson's blog post was featured

Be the Coach Your People Deserve

Ken Blanchard called feedback the “breakfast of champions,” and rightfully so, because we all need…See More
Terrel Watkins posted a blog post
Dave Anderson posted a blog post

Be the Coach Your People Deserve

Ken Blanchard called feedback the “breakfast of champions,” and rightfully so, because we all need…See More
Scot Eisenfelder posted a video

Conquesting Through Service

Scot Eisenfelder shares why conquesting through service is the key to future profitability.

Get Newsletter

© 2019   Created by DealerELITE.   Powered by

Badges  |  Report an Issue  |  Terms of Service