Tesla electric cars success tides changing as customers shift towards other EVs

Tesla electric cars success tides changing as customers shift towards other EVs

Over years Tesla has gained a customer base as it was one of the few manufacturing automakers which made one of the best EVs. However, now the competition is increasing as more automakers are entering the market. Also, the customer’s requirements are changing, and high-end customers are looking for luxury vehicles. While some prefer affordable EVs with lesser vehicle for city commute.

Tesla electric cars success tides changing as customers shift towards other EVs
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A survey conducted by Kelley Blue Book, claims that people’s interest is changing toward Tesla. It has significantly dropped quarter over quarter. The survey claims that 12 percent of luxury vehicle buyers considered Tesla electric cars in the third quarter of 2022. While in the previous quarter, it was 15 percent. The drop in consumer interest in Tesla EVs may seem like a small sump, but it marked the largest quarter-over-quarter decline in the luxury car segment, claimed the survey.

It also stated that consumers opting for Tesla Model 3 dropped by 10 percent in the third quarter as compared to the second quarter. Also, the Model S and Model Y are no longer on the list of the most-purchased luxury cars, where they both held a strong position for two years. The study claims that Tesla Model is currently in the third position on the list of the most desired vehicles, which is encouraging information for the US EV manufacturer.

Top models

Tesla Models are the top model in the luxury category. Hence, despite the quarter-over-quarter slump in consumer interest in Tesla cars, it may not be as bad as it looks on paper. There may be a reason behind the drop in consumer interest in Tesla cars. The new US federal EV tax credit structure is coming. Hence, buyers may be waiting for a 47,500 credit in 2023. Another reason may be the global economic turmoil. Consumer sentiment has been dampened due to the economic crisis, and they may be thinking that it is not the right time to invest in a pricey electric vehicle.

While all speculations could or could not be true. The sales of other EVs are increasing and evidently, people’s interests are also scattered. Tesla might have to strategize accordingly. Amid Chinese automakers entering major global markets with cheaper EVs, the luxury car segment is no longer dominating the EV industry like earlier. General Motors is highly focused on bringing those EVs to market that are affordable by an average-earning American as well. While that is another set of customers that Tesla is not targeting. Recently, Elon Musk mentioned Tesla not ruling out launching much more affordable EVs. Over years, his idea of cheaper EVs was different. Now, it appears that the ideas are changing as well.