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Tesla’s Model 3 is luring customers away from luxury brands like BMW and Audi

Published Nov 12th, 2019 10:13PM EST
Model 3 Vs BMW
Image: TierneyMJ/Shutterstock

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One of the more intriguing aspects surrounding Tesla’s ongoing success is how that success continues to impact traditional automakers. As a prime example, it’s no secret that the allure of Tesla’s Model S lured away buyers who were otherwise keen on purchasing a Porsche. Notably, this isn’t even a point of contention as Porsche Cars North America CEO Klaus Zellmer admitted as much a few years ago.

“We have lots of respect for Tesla,” Zellmer said during a 2017 interview, “and, yes, I’m sure there are some Porsche customers, that in terms of connectivity, digital stuff in the car and electric battery in the vehicles, didn’t find the car that they wanted with Porsche so they bought somewhere else.”

All that said, it stands to reason that Tesla’s Model 3 — which sells in much higher volume than the Model S — is having an even greater impact across the automotive industry.

In light of that, Bloomberg recently ran an exhaustive survey of 5,000 Model 3 owners where, among other things, they gleaned a lot of information about the type of buyers that gravitate towards the Model 3. Suffice it to say, the results were surprising.

While one would expect the Model 3 to lure customers away from economy cars from the likes of Toyota, the survey found that the Model 3 is also luring away customers from luxury brands like BMW and Audi. Sure, this is to be expected with the pricey Model S, but the Model 3 has long been positioned as an EV for the masses as opposed to a luxury vehicle.

“Car customers are fairly predictable,” Bloomberg notes. “They stick with vehicles that are similar to the ones they drove before. Brand loyalties are even passed down across generations. Tesla, so far, has broken these loyalties with the allure of new technology, high performance, and environmental sustainability.”

The chart below speaks volumes:

Image source: Bloomberg

Another interesting tidbit revealed by the survey is that the luxury manufacturers least likely to be impacted by the Model 3 include Mercedes-Benz and Lexus.

Tesla has certainly faced its share of issues as it pertains to vehicle durability and build quality, but the fact remains that Tesla owners — on the whole — remain exceedingly strong proponents of their cars, the company as a whole, and ultimately happen to be a group of enthusiastic, passionate, and persuasive brand ambassadors that money simply can’t buy.

Bloomberg’s survey — which includes testimonials from new Model 3 owners — is incredibly eye-opening and definitely worth checking out in its entirety.

Yoni Heisler Contributing Writer

Yoni Heisler has been writing about Apple and the tech industry at large with over 15 years of experience. A life long expert Mac user and Apple expert, his writing has appeared in Edible Apple, Network World, MacLife, Macworld UK, and TUAW.

When not analyzing the latest happenings with Apple, Yoni enjoys catching Improv shows in Chicago, playing soccer, and cultivating new TV show addictions.