Re:Brutal week sees Tesla shares lose $80B in market value
by thdespou on Saturday December 24, 2022 @09:32AM
(#34117110)
Depending where you live, all cars could be considered luxury cars but in reality they are just expensive. For example in Ireland a new scoda Octavia starts from 34k-54k euros. There is not big difference in price, but it's not considered luxury car for sure. I remember back in 2002 a good version of this car would cost between 16k-24k.
Re:Brutal week sees Tesla shares lose $80B in market value
by rsj_hn on Saturday December 24, 2022 @12:24PM
(#34118884)
Let's not pretend that we are babes in the woods, with glistening eyes just opened to the world, trying to decide for ourselves what a "luxury car" really is.
This is a well defined market segment for suppliers and consumers alike. It is a term of art used by industry analysts, investors, producers, and car buyers. Don't create your own definitions or philosophical musings about "what is, luxury, really?". If I say I am going to buy a junk bond, you don't need to start questioning "what is junk? All things are needed in life. One man's junk is another man's treasure", etc.
Fully Self-Driving is another 15K add on and there are other add ons as well. So let's say 49-80K depending on trim and options.
A 2022 BMW 3 Series goes from 42K to 57K. A 5-Series goes from 60K-74K (we'll ignore the 2 and 4 series) depending on trim and all wheel drive.
So Tesla is priced as a luxury car, and therefore is in that market -- or it better be, otherwise they need to start cutting prices.
If you look at the demographics of Tesla buyers, it's a median age of 54 and median household income of 128K[1]. So yes -- luxury market. Not Rolls Royce luxury, but Lexus/Audi/BMW/Mercedes luxury.
[1]https://www.start.io/blog/tesla-target-market-analysis-and-s...