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Tesla primes itself to dominate Luxury-car sector after overtaking Audi

The Tesla Model 3's interior. (Photo: Andres GE)

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Tesla is priming itself to overtake the entire luxury-car sector after passing Audi for fourth place in registrations in 2020 for the category. Tesla registered 200,561 new registrations in 2020, passing Audi for fourth on the list.

Tesla had its biggest year in 2020 internally. After producing over 509,000 vehicles and delivering just under 500,000 of them, Tesla had culminated the most challenging year in history thanks to the COVID-19 pandemic into its most successful campaign as an automaker in its short and storied history. As a result, Tesla also added to its streak of consecutive profitable quarters, launched a new Gigfactory campaign in Texas in 2020, and began deliveries of the Model Y crossover in China.

But in the United States, the Silicon Valley-based electric carmaker added on to its increased presence by registering more cars than Audi, despite Tesla only mass-producing its cars since Summer 2017. Automotive News data suggests 200,561 new Tesla electric cars were registered in the U.S. in 2020, surpassing Audi with just shy of 184,000 cars. The only three companies that managed to register more cars in the luxury segment than Tesla: Mercedes-Benz, BMW, and Lexus.

Tesla has managed to make a name for itself in the highly-competitive luxury vehicle segment. With the average cost of a car in the U.S. ranging around $40,000, most of the lower-end luxury cars from Mercedes, BMW, and Lexus are right in the wheelhouse for many families. Tesla’s mass-market Model 3 in its Standard Range+ variant is under $40,000, and the Standard Range Model Y comes in just above the $40,000 threshold before incentives. Two of Tesla’s most economical EVs fit right in this category of affordable luxury cars and both are a great fit for anyone based on a variety of reasons.

Tesla dominates ‘Luxury Brand’ segment in Kelley Blue Book’s Image Awards

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First, the Model 3 and Model Y are Tesla’s two mass-market vehicles. Before them, the only offered vehicles were the Model S and Model X, and they stood well above the threshold for the average cost of a car in the United States. Nevertheless, Tesla has always offered something that other car companies cannot seem to figure out: electric powertrains with range, performance, and unmatched power.

Tesla’s tech has outclassed competitors for years, especially as it is one of the few to currently offer constant Over-the-Air software updates. Along with the savings on gas and what could be a reintroduction to the $7,000 EV credit, Teslas are becoming the most sought-after vehicles because of their affordability, alignment with climate issues, and unmatched performance.

As production continues to be improved by introducing new manufacturing plants and new manufacturing techniques, Tesla will only continue to overtake other long-standing names on the luxury-car sector list. With Audi becoming the first victim of the notable four names, Tesla primes itself to overtake the next three to become the most popular luxury carmaker globally.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

Elon Musk

Elon Musk may rethink his charity pledge after Peter Thiel’s Bill Gates warning: report

Musk reportedly took Thiel’s suggestion seriously.

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Credit: Tesla

Reports have emerged suggesting that Elon Musk might be rethinking his promise to give away most of his fortune. This was reportedly due to his longtime friend Peter Thiel, who told the world’s richest man to withdraw from the Giving Pledge because his wealth could end up “in left-wing nonprofits chosen by Bill Gates.”

Thiel shared the story during a private lecture series in San Francisco in September. As noted in a Reuters report, Musk reportedly took Thiel’s suggestion seriously.

Thiel warned Musk about his fortune going to Gates-backed causes

Thiel said he even ran the math to make his point. By checking actuarial tables, he calculated that if Musk died within a year, his pledge would effectively direct $1.4 billion to Bill Gates. Musk reportedly said, “What am I supposed to do, give it to my children? You know, it would be much worse to give it to Bill Gates.”

Musk signed on to the Giving Pledge in 2012, two years after it was co-founded by Gates and Warren Buffett, as noted in a Daily Beast report. The initiative asks billionaires to donate the majority of their wealth to charitable causes either during their lifetime or through their wills. Gates’ foundation has focused on global health, education, and gender equality, areas Thiel has described as “left-leaning.”

Spokespeople for Thiel, Musk, and Gates have not issued a comment about the matter.

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Elon Musk and Bill Gates

Thiel, who co-founded PayPal with Musk in 2000 before launching Palantir and becoming Facebook’s first outside investor, has maintained close ties to the Tesla and SpaceX CEO over the years. Musk, for his part, continues to donate through the Musk Foundation, which funds education, clean energy, and scientific research.

Elon Musk and Bill Gates’ relationship has taken a nosedive in recent years, especially amidst news that the Microsoft co-founder had taken a short bet against Tesla. Musk seemed to have taken Gates’ Tesla short personally, considering that the EV maker is fighting for sustainability, a cause that the Microsoft co-founder has supported. 

Gates has also been skeptical of Tesla’s projects such as the Tesla Semi, which Gates noted was not feasible due to the limitations of battery technology. More recently, the two billionaires butted heads when Gates claimed that the cuts initiated by Musk’s DOGE initiative would cost 2 million lives. In a post on X, Musk responded by stating that “Gates is a huge liar.”

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Tesla axed one of the Model Y’s best features in ‘Standard’ trims: here’s why

Lars Moravy explains why Tesla chose to go with a glass roof in the new Standard trims, despite it not being visible.

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Credit: Tesla

Tesla chose to implement a glass roof on the new Model Y ‘Standard’, despite the fact that you won’t be able to see it from the inside.

In the new Model Y ‘Standard’ configuration, one of the biggest changes is the lack of a glass roof, which is one of the more unique features Tesla offers.

How Tesla’s Standard models will help deliveries despite price disappointment

The entire roof of the Model Y’s ‘Premium’ and Performance trims is glass, giving everyone in the car an astounding view of the sky.

However, Tesla chose to cover this up in the new ‘Standard’ trim level. Here’s a look at it:

Credit: ItsKimJava | X

Despite it not being visible from the inside, the roof is still made of glass. It is only visible from the outside. Even if you removed the headliner in the Model Y ‘Standard,’ you would not be able to see the outside, because the glass is opaque:

Tesla’s Vice President of Powertrain, Lars Moravy, commented on the use of glass in the Premium models and how it differs from the glass in the Standard trims:

“All glass is NOT created equal. Remember, the Model Y Premium glass is laminated with silver IR reflective coatings to make it super comfy and reject solar load… the standard is not… plus LOTS of people wanted a closed headliner, always trying to listen (and improve road noise at the same time).”

The decision to cover up the glass while still using it was an efficiency choice. Moravy said Tesla chose to keep the glass for the new Standard models due to “cost, supply chain, and manufacturing efficiency.”

Tesla launched the Standard models on Tuesday. The cars were effectively a counter to the loss of the $7,500 EV tax credit.

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How Tesla’s Standard models will help deliveries despite price disappointment

“What a giant miss,” one person said.

“With all due respect, no way is this what y’all have been hyping for 6 quarters…” another one claimed.

“So…where are the affordable models?” another reply read.

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Credit: Tesla

When Tesla unveiled its Standard versions of the Model 3 and Model Y this week, reactions were mixed. Many liked the addition of two new models, but they were also concerned about the price.

“What a giant miss,” one person said.

“With all due respect, no way is this what y’all have been hyping for 6 quarters…” another one claimed.

“So…where are the affordable models?” another reply read.

Tesla launches two new affordable models with ‘Standard’ Model 3, Y offerings

There’s no arguing it: $36,990 and $39,990 for the Model 3 Standard and Model Y Standard were not what consumers had in mind.

But, despite Tesla getting its new offerings to a price that is not necessarily as low as many expected, the two cars still have a chance to assist with quarterly deliveries.

Here’s how:

First-time Tesla buyers will lean toward Standard models

Tesla owners have become accustomed to expecting all the bells and whistles in their cars. Heated seats, ventilated seats, acoustic glass, vegan leather, industry-leading performance, world-class range, and a glass roof are all expected by current or past owners.

But what about new owners?

New owners do not have these high expectations, so to many of those who have not sat in a Tesla or driven one before, they are going to be blown away by the minimalistic looks, capabilities, and features of the Standard models.

The Premium models will feel like the high-end offerings that other automakers also have for sale, except they’ll only be a few thousand dollars more than Tesla’s base models. With other companies, the price for these higher-end trims is $10,000 or more.

The more affordable Standard models will be there, but if buyers want the extra features, they’ll likely be able to justify the extra few thousand dollars.

Tesla’s Standard Models fall under the U.S. Average Transaction Price

Kelley Blue Book releases a new report each month showing the average transaction price (ATP) of all vehicles sold in the U.S. for that month.

The latest report, released on September 10 for the month of August, revealed an ATP of $49,077. This was up 0.5% from July ($48,841) and higher year over year by 2.6%.

Technically, Tesla’s new Standard models fall well under that ATP, meaning they technically do qualify as “affordable.” However, realistically speaking, affordable does not mean “under the national average.”

It means accessible for low-income families, single-parent households, and other groups. This would likely be under $30,000.

Déjà Vu with the Cybertruck Rear-Wheel-Drive

When Tesla offered the Cybertruck RWD, it stripped out many of the best features of the Cybertruck, such as the adjustable air suspension, powered tonneau cover, and interior materials, just to name a few.

It was $10,000 less than the Cybertruck AWD, but many people essentially viewed it as a way to push consumers toward the more expensive variants, since the discount was a better value than missing out on features.

Tesla released the Cybertruck RWD to make the AWD look like a deal

Something similar could happen with the Standard models. With it only being a few thousand dollars less than the Premium Model 3 and Model Y, some consumers will see it as a better option to go with the more expensive trim levels.

Even if they don’t, many car buyers will see it as a deal to grab the Standard versions.

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