Howard wrote:To give Tesla their due, they have shown it is possible to manufacture EVs with a reasonable range. Totally suitable for a second car. But will they be able to ramp up sales to match their production capacity?
To break into the mass premium market in Europe (and probably China) manufacturers need to make EVs at a starting price of around £20 - £25k for a base model. Then they can offer more luxurious versions at higher prices. This will open up a very large second car market.
I don't think Tesla will be that successful selling a really basic model 3 for around £35k in the UK (or Europe). Buyers of this value of car would expect leather (or "vegan" leather) seats and a "luxury" interior. Who wants to pay this amount of money and look a cheapskate when your friends get in the car?
I get into friends' cars which are BMW 7-series and similar, and into other friends' Tesla S. Both are high-end cars - up to you whether you call them premium or luxury or whatever. OK the aesthetic is different, but nonetheless they are not my cheapo Golf. I guess my NAD has a different aesthetic than my Nakamichi, that's product differentiation at work.
And there is no doubt about it, but that Tesla are making people's "first" cars and they are being used as such. In fact they are too expensive to be the 'second' car and for many Tesla families the anecdote is that this role is reserved for a used Prius, until such time as used Teslas become available.
Whether Tesla is a good investment I am unsure about. But my experience is that we should be very wary of 'trashtalking' them as a product as that would be to misinform our investment decisions.
And VW are fully aware that Tesla are the real deal in competition terms. That is why they are going all-out on the ID platform. They too realise this is a bet-the farm, or at least a bet-the-burning-bridge moment. Are they Nokians at the bridge, facing Apple? Difficult call .......