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This isn't the most correct analysis, the cares are comparable in price but not in the actual category the Tesla is anything but a Luxury car as far as the internals go, it is currently a hip status symbol just like the iPhone was (and is) but it could just as much turn out to be an iWatch down the line.

Tesla doesn't publish very detailed sales figures and there isn't that market research into it (at least public one) yet, currently it seems that many people are buying a Tesla as a second (or even 3rd, 4th etc ;)) car as people who can afford to buy a 100,000$ car usually will have more than 1.

From anecdotal experience I've also noticed that quite a few of the people who buy through finance / lease a Tesla really can't afford one but like many people who end up buying a 800$ phone do - simply because it makes them feel better.

Tesla owners currently enjoy quite a bit of perks that traditional car owners do not, the insurance rates tend to be quite preferable (most likely partially subsidized by Tesla it self), the finance options are also one of the best in the market (In the UK I can pretty much get a 100% finance on a Tesla which costs about my yearly pre-tax income, considering the cost of living and the taxes I pay I would technically will not be able to afford it, I can't get any thing close to this for other cars which cost 100K GBP for example), this is not that dissimilar than how Apple pushed a very expensive handset at the time through their partnered carriers but phones aren't cars so it yet to be seen how it will work out.

Most Tesla owners haven't owned the car for longer than a year atm, the average life span of a car in the US is still about 10 years, there isn't enough data currently to know how the Tesla secondary market will work out (the current "secondary" market sells cars that are usually couple of months in use for almost the same price as a new one), what will the end TCO of a Tesla be after say 5 years to both the end consumer and the company.

Luxury cars in the US have a very well established secondary market with buy backs and dealerships that specialize in reselling cars that tend to hold the value quite well (this is especially true to the more boutique cars like Jags). Some cars are have also very specific markets in the US (and any where else) e.g. while pretty much anyone will want to drive a BMW 5/7 series or a high end Audi not that many people will go for a Jag or a range rover these days.

Tesla has had a very good market penetration but it's really too early to tell what it means, and with a large part of it's costumers buying it because it's cool and because of it's environment impact (or lack there off) could also quite likely look at other EV options when some actually arrive on the market.



I urge you to price a similar car from a luxury brand (so Acura, Audi, BMW, Mercedes, Lexus, Nissan, Infiniti and maybe Cadillac) with similar feature set (specifically all safety packages, lane-tracking and self-parking packages where available) and see what you come up with.

Fully loaded versions are very expensive because luxury manufacturers feel they can charge whatever they want and get away with it. Those things cost a pretty penny - a navigation system add-on in BMW, for example, is just under $2k (as if you'd buy a luxury vehicle without navigation system in 2016). A backup camera from Mercedes is optional even in "luxury" edition of their vehicle, and is $770. Blind Spot Monitor is another $750.

And we excluded ultra-luxury sporty manufacturers like Maserati, Ferrari and Lamborghini, as they represent comparatively tiny segment of the luxury market. However, "performance" versions of Acura, Lexus, BMW, Mercedes and even Nissan (GT-R) and Chevrolet (Corvette), if that's what you're after, are priced above "performance" versions of Model S.

Then there're the maintenance costs, more or less mandatory at dealer prices if you ever want to sell your car for decent resale value. Then subscriptions for things like maps, navigation and XM real-time traffic. Then, of course, the cost of gas - even if you assume oil falls down to $0 (perhaps a free tank of gas with a purchase of a hot dog at the gas station, if current price trends persist), you're still getting pretty close on the TCO front for 4-5 years.




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