Tesla's new Model 3 has reached a huge number of reservations since it was unveiled. This, in itself, should be a cause for concern among rival carmakers like BMW, Audi, and Mercedes-Benz.
Tesla Competes Using Top-Of-The-Line Updates
While people might consider that GM and Tesla will be electric car rivals with the new Chevy Bolt and Model 3, Tesla CEO Elon Musk welcomes the Bolt into the car market and doesn't consider it as a rival to the Model 3, reports Bloomberg. In fact, he sees the Model 3 running in competition with other German-made cars.
Both the Model 3 and Bolt have similar powertrain specifications as well as selling prices, but still they aren't meant to compete with each other, because they're made for different purposes, reports Fool. The Model 3 is a sleek, sporty sedan, while, on the other hand, the Bolt is a crossover SUV.
Tesla vs. BMW, Audi & Mercedes-Benz
The real competition here is between Tesla and German carmakers BMW, Volkswagen's Audi, and Daimler's Mercedes-Benz unit. Musk has actually started the rivalry with the German carmakers, as well as Porsche, by releasing Tesla's first-ever full-sized EV, the Model S and is now continuing with the Model 3.
"You should think of the Model 3 as sort of really competing in kind of the BMW 3 Series or Audi A4 market," Musk said. Now with the 276,000 "reservations" that Tesla received for the Model 3, Audi, BMW and Mercedes-Benz should really take the competition seriously.
Fool notes that although the combined sales of BMW's four-door 3-series and two-door 4-series is around 140,000 last year, Tesla will still get about 103,000 projected Model 3 sales when factors such as actual purchases and deliveries are included. This gives Tesla the second spot, surpassing both the C-Class, A4 and A5 in terms of sales.
Tesla Sales Shooting Up
Even if the total number of actual Model 3 sales does not reach the number of reservations, Tesla will still be able to get a significant amount of cars sold - numbers that should've been registered for the German automakers' car sales. This is enough reason for them to consider a real run for the money.
