In the latest Tesla Motors Inc (NASDAQ:TSLA) news, the electric vehicle manufacturer is “conquering” Toyota in the sense that many former Toyota owners are buying Teslas. According to Autotopia, former Toyota Motor Corporation (NYSE:TM) (TYO:7203) Prius owners are switching to the Tesla Model S in droves.’
“Conquest sales” are an automotive industry sales metric that tracks sales made to customers who previously owned another brand. Although the total number of switchers is still relatively small given that Toyota Motor Corporation (NYSE:TM) (TYO:7203) sold 234,228 vehicles in the Prius family in 2013, the “conquest sales” trend is definitely favoring Tesla Motors Inc (NASDAQ:TSLA).
Tesla “conquest sales” statistics
According to recent Polk Automotive data, Toyota Motor Corporation (NYSE:TM) (TYO:7203) represents 15.51% of Model S conquest sales. Mercedes-Benz and BMW each account for just over 10% of the all-electric luxury vehicles “conquests”.
“The pure conquest data show that the Model S is conquesting owners of Toyota vehicles more frequently than owners of any other brand,” explained Polk Automotive analyst Tom Libby. “The Prius is at the top of that list, with the Toyota Highlander SUV and Sienna minivan ranking fifth and sixth overall.”
Luxury electric vehicle
It boils down to the fact that Tesla Motors Inc (NASDAQ:TSLA) Model S simply offers more than the Toyota Motor Corporation (NYSE:TM) (TYO:7203) Prius. Most of those switching from the Prius to the Model S have at one time owned a Mercedes, BMW or another expensive luxury automobile, so they are excited at the opportunity to own an all-electric luxury automobile.
Trend to continue
Most auto industry analysts believe that Tesla Motors Inc (NASDAQ:TSLA)’s conquest sales numbers are only going to get better over time. According to Kelley Blue Book’s Senior Insights Director Karl Brauer, “Tesla was among the top-selling luxury brands in [California] in 2013, which means it’s cutting across every luxury manufacturer out there.”
Furthermore, the soon-to-be-released Tesla Model X crossover utility vehicle, which is noted for its roominess and innovative “falcon” doors that open upwards, is also likely to conquer more Toyota owners as well as those who own or are considering the Lexus RX 450h hybrid crossover. The Gen III Model E will not be available until 2017, but it is also likely to provide another boost to Tesla Motors Inc (NASDAQ:TSLA)’s conquest sales.