Tesla Motors Inc (NASDAQ:TSLA) cars are fast, a fact hard to deny as the mean machine can go from 0 to 60 mph in just 5.9 seconds and can cover 319 miles on a single charge. Though Tesla Model S might be the hottest car around, but it is not the most popular in terms of sales even in its home country, says a new report from Uncommon Wisdom Daily by Tony Sagami. In the United States, Tesla is just the fourth most popular electric car.
Tesla Model S expensive than rivals
The relatively low price point of $69,900 does not land the car in the category of super expensive luxury cars. But the price does rise to around $100,000 after the add-ons. This is a very high amount for an electric car. Electric cars are seeing rising interest in the United States, with the sales doubling from 52,581 electric cars in 2012 to 97,507 in 2013.
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The top five selling electric or hybrid gas/electric cars in U.S. for 2013 (including base price) were: Nissan Leaf $25,000, Chevrolet Volt $35,000, Toyota Prius $30,000, Tesla Motors Inc (NASDAQ:TSLA) Model S $70,000 and Ford Fusion Energi $35,000.
All other rivals of Tesla Motors Inc (NASDAQ:TSLA) Model S have a price tag that is only half of what Tesla is charging after including tax incentives. Nissan Leaf tops the chart with the lowest price and highest sales. Over the past 12 months, more than 50,000 Leafs were bought in the America, escalating the car to the number one position for electric vehicles.
Slow sales growth
Some investors will, however, argue that the electric car segment forms a very small part of overall sales for Nissan, General Motors, Toyota and Ford. Tesla Motors Inc (NASDAQ:TSLA) is the only “pure” electric car stock.
Investors apparently are not worried about Tesla Motors Inc (NASDAQ:TSLA)’s quarterly reports, which indicated the company posted a sluggish sales growth of 0.8% quarter over quarter. That means sales did not even increase 1% quarter over quarter primarily due to slowing North America sales. In the first quarter, the company produced/delivered 3,401 electric cars, compared to 4,900 sold in the first quarter of 2013. This reflects a drop of around 1500 cars in North America in the first quarter of 2014 compared to the same period in the previous year.
According to Tesla Motors Inc (NASDAQ:TSLA), the decline in the sales is the after effect of expanding international sales, which are increasing, but the United States remains the most crucial market for electric cars. Therefore, declining sales in the United States is certainly a cause of concern for Tesla, according to author.