Some may disagree that Tesla’s had it easy since its launch back in 2008. Being the first of its kind is always helpful when it comes to getting the sales in, but it still takes a lot of time, money, and skill to remain that way, and that is why Tesla will never need to worry when it comes to selling cars, as forever more, they will simply sell themselves.
Although a recent Consumer Reports review just painted Tesla in a rather disappointing light, as long as their clientele aren’t in agreement they have nothing to fear. The review was on Tesla’s Model X and was reported to be more for show rather than for practicality. But, Tesla disagrees (as one would) and says that customers are more than happy with their vehicles. So, is there any truth in it, or should Tesla be just fractionally worried?
Elon Musk, Tesla’s CEO, has a target of producing and delivering 500,000 vehicles annually by 2018. That’s quite a large number, and for a company that’s been in existence for less than 15 years and now is now worth several billion dollars, that’s not bad going, al long as it’s achievable. But, this doesn’t seem to be the issue for them. The problem for Tesla is more with being able to meet the demand, rather than not having enough of it. In regards to the Model 3, it was mentioned in a few tweets and a live-stream unveiling event, and in no time at all racked up almost 400,000 reservations for the motor at $1,000 each.
So, the company is getting there with the numbers, it just needs to make sure it can stick to the promises that are made. So far this year Tesla has delivered almost 100,000 vehicles to its customers, without doing a single bit of advertising. Pretty good, eh? It’s always been the same. Emails are sent and customer events are held, but other than that and a few tweets, Tesla does no other marketing – the cars simply sell themselves.
The EV market makes up about 1% of vehicle sales worldwide, and if Tesla can secure a big chunk of those, they have nothing to worry about. And, as long as they can keep churning them out, people will buy them. With the amount of pre-orders that have been generated for the Model 3, it’s apparent that many people are warming to the likes of Tesla. Confidence will grow more as sales increase and as the price becomes more affordable for the average consumer. So, to answer the question, will Tesla always have an easy ride, I would say yes. Musk has clearly made a very comfortable foundation in which it can be built upon forever more.
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