Tesla Motors Inc (NASDAQ:TSLA) has had the market for electric cars all to itself since its inception. Sure, you could mention Fisker, but that nearly bankrupt company is hardly worth the waste of words. The Model S sedan is, if the reviews are to be believed, a truly remarkable piece of automotive history and a beautiful automobile that gets you there green, if you happen to have a lot of money.


Now Bayerische Motoren Werke AG (FRA:BMW) is throwing its hat into the ring of full-electric vehicles. If the Tesla Model S is stylish, the BMW i3 is, well, different. And that’s not necessarily a bad thing. In fact, the more I look at it the more I like it. Initial reviews of the car have been close to perfect, with test drivers declaring that the i3 “drives just like a true BMW.” The car will hit U.S. markets in early 2014.

BMW and Tesla creating compatible yet competing models

BMW obviously has a richer history than Tesla Motors Inc (NASDAQ:TSLA) and the two will remain out of direct competition with each other for a few years yet. The Model S seats seven and is a true touring car that can get 300 miles on a single charge. Additionally, this year will see the opening of cross-country charging stations that can have you back on the road quicker than you can fill your gas tanks. BMW’s i3 is a four passenger car that is designed to stay in town and run your errands or go out for dinner. This, however, will change as both Tesla and BMW begin filling out their product lines.

We’re not a car site so I won’t take time with the specs of the new Bayerische Motoren Werke AG (FRA:BMW).  I will however mention that out of this new competition has sprung a potential alliance between Tesla Motors Inc (NASDAQ:TSLA) and future competitors. With a few exceptions, Tesla doesn’t have dealerships.  Tesla has recently been locking horns with the traditional dealership model and looking to sell its cars on the internet directly to the consumer. Tesla doesn’t wish for more, and frankly, doesn’t need it.

Tesla and BMW both looking for direct and internet sales

Bayerische Motoren Werke AG (FRA:BMW) has recently announced with the unveiling of the i3 that it also wishes to get into direct sales to consumers with its Mobile Sales Force that visits the home and through the internet.

Something that may help Tesla Motors Inc (NASDAQ:TSLA), as both companies claim that their cars don’t fit in the standard dealership model. This must be looked at in a number of states that will all but legislate Tesla, and maybe the BMW i3, out of its citizens’ hands.