[ajross]

I think you're wildly overestimating the sophistication of car buyers.

Luxury car buyers, fundamentally, are buying the logo, and the handful of obviously markers inside the car that tell people it's a Lexus or whatever. They aren't buying fit and finish, even if they think they are. Tesla buyers are no different: they want a Tesla, not a Lexus or a Mercedes.

I'm sure to the trained eye a Lexus has a different build than a Tesla, just as cheeses and wines are different. That's not what drives sales.

[gamblor956]

I don't think you're taking into consideration what people want out of a commuter car. The Model 3 isn't targeting luxury buyers anymore--it's targeting upper middle class drivers looking for a commuter car that will function as their primary day-to-day vehicle.

They want comfort, first and foremost. A Tesla nameplate means nothing on your daily commuter car if it's not pleasant to drive. A Lexus or a Mercedes, even at the entry level, provides a comfortable ride. The interiors feel luxurious. A Tesla does not. And that's the problem--it charges an entry-level luxury price but doesn't provide an entry-level luxury ride. Subjectively, I find that the Tesla's interiors aren't even as comfortable as the Bolt, and I'm not even including the many QC issues they have in that assessment.

The Tesla name might bring potential buyers to the dealership, but when you're targeting a road warrior, the interior is what sells the car.

[ajross]

I dunno. I mean, I want a Tesla (a little) and I don't want a Lexus or Mercedes in particular. I think you're overgeneralizing. Markets are big, the "people" in your first sentence aren't the same population for Tesla buyers and Lexus buyers.