What car brand is now climbing up to dominate the luxury car market? That would be none other than Tesla whose stock price has risen by 280% since the start of 2013. It thus becomes quite easy to regret not purchasing such stock, which was largely boosted due to Teslas Model S taking up 8.4% of the entire luxury automotive car market thus far this year in the United States.
This increasingly popular car, the Tesla Model S, far and away exceeded sales of competing luxury vehicles such as the Mercedes S Class, the BMW 7-series, and the Audi A8. The fascinating realization to take from this news covering the first six months of the year is that the Model S has only been in production for roughly fourteen months, while the models from other car companies are far more established, as are their brands as well to the general populace.
What has made Tesla soar as of late is the mounting awareness amongst consumers that they must buy products that are efficient and help to protect the environment. The acceptance of these PEVs, or plug-in electric vehicles, has never officially caught on until the luxury automobile industry turned around in 2011 when BMW and Mercedes sales greatly spiked. Since 2011, there has been over 110,000 PEV sales from brands such as Toyota, Nissan, General Motors, Tesla and more. What separates Tesla from the aforementioned bunch is their sleek look that does not take any style points away from the cars overall energy efficient purpose. In fact, Tesla vehicles have even sold twice as many cars during their first two years of production than all hybrid vehicles during their first two years of being on the market.
So what about the future of Tesla? While the Tesla Model S is selling for over $60,000, CEO Elon Musk is determined to bring the public a spectacular new vehicle by 2016 that will cost only $30,000. In doing so, Tesla is actively seeking ways to decrease the cost of batteries, which they and the Electrification Coalition expect to drop in price by 50% come the year 2020. Already, battery prices have dropped by 40% just from 2010 to 2012 alone.
From 2010 to 2011, only 17,000 electric vehicles were sold in the country. In 2012, there were 52,000 purchased. Now only halfway through 2013, 41,000 of these electric vehicles have been bought as the models of these cars on the market has gone from 3 in 2010 to now 13 available in 2013. With such steep growth seeing no signs of slowing down, especially as the country becomes more environmentally conscious, what is assured is that Teslas 280% stock increase in six months is likely to continue far into the future.
More Information: The Motley Fool