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