Tesla Motors Inc NASDAQ:TSLA Model S Sedan U.S. sales lagged behind BMW’s electric powered i3 vehicle in the month of August. According to estimates by CleanTechnica.com, Bayerische Motoren Werke sold 1,025 units of its electric luxury sedan compared to just 600 units of Tesla Model S in the month of August, which is a decline of 54%. Moreover, BMW sales surged 182% month over month from 363 units in July.

Tesla Motors TSLA Model S

Tesla focusing more on foreign markets

According to analysts, the Palo Alto-based company could not match BMW sales for the simple reason that the former focused on the emerging markets like Asia and Europe to try and strenghten its international footing. However, according to a report from insideevs.com, even in Norway where the demand for Tesla Motors Inc NASDAQ:TSLA cars is high, BMW managed to outsell Model S in August with 202 units versus Tesla’s 183 units.

Tesla Motors Inc NASDAQ:TSLA has built a network of superchargers, which until now has given it an edge over other companies, but BMW is up for the challenge with plans to expand its network of charging stations across the country starting from California.

Barclay’s analysts mentioned that Tesla Motors Inc (NASDAQ:TSLA) was often said to adopt a sandwich strategy for gaining success in the market, and it seems that BMW has taken a leaf from EV manufacturer’s notebook. The Tesla Model S has an entry price of $71,000 and goes up to $130,000.

Model 3 a real competitor for i3

According to market experts, investors should not jump to any conclusions, as there might be no competition at all because of the different segments that the car manufacturers are serving. Compared to Tesla Model S, which is priced at $70,000, BMW i3 is priced at $42,000 and needs a recharge at every 120 miles.

Tesla Motors Inc NASDAQ:TSLA has plans to launch an affordable Model 3 in 2017, which will be a close competitor of BMW i3. The Model 3 is expected to come with a price tag of around $35,000, and like the i3 it will also cater to the mass market. The company is making an effort to pulling down the cost of its battery-pack, which would be possible with the help of its new Gigafactory that will allow the company to produce lithium-ion batteries pack at 30% lesser cost.

Tesla is also expecteded to launch its all-electric SUV Model X next year, which might be anotherreason for slow Model S domestic sales.