Tesla wasn’t the first company to launch an electric car. Much like Apple wasn’t the first company to launch a smartphone. However, like the iPhone, Tesla has easily become the most popular brand of electric vehicles and is the one all EVs are benchmarked against. So anytime a new electric car makes its debut, it’s considered to be a Tesla fighter or Tesla Killer. Now, there are more of these so-called Tesla Killers than ever before and, it seems, that BMW is one of them.
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If other brands are going to take Tesla down, the time is now. The Silicon Valley-based EV brand is in some serious trouble at the moment. Thanks to the absolute production mess that is the Model 3, sinking stock prices and an army of electric vehicles from a number of brands on the horizon, Tesla is more vulnerable than ever. In fact, the brand is hemorrhaging money and time.
When Tesla first showed off the its value model, the Model 3, it broke records for pre-production customer reservations. Since that high point, though, Tesla has been trending downward a bit. The official launch of the Model 3 was underwhelming at best, due to the lack of production capability. So very few customers have received their pre-reserved cars. And there are continued issues with production, making investors very nervous, which hurts Tesla’s stock prices and, subsequently, its pockets as well. Further hurting Tesla’s stock is the fact that, in addition to cracks forming in its own foundation, it’s no longer the only EV maker in town.
If you combine the statements of several different automakers, there will be an influx of over 50 different electric vehicles by 2025. So Tesla won’t be the go-to electric product for much longer. And BMW is part of that influx, claiming it will launch ten new electric cars by 2025. It already has two on the horizon, with the BMW iX3 and i4.
The one closer to actual production, the BMW iX3, will be built on the existing BMW X3, making it more of a traditional SUV, but be powered entirely by electricity. So it will have 270 hp and 249 miles of range. While that’s not a ton, nor is it more than Tesla’s best offering, it will be more affordable than Tesla’s best and it will be in a more traditional shape, making buyers more willing to jump on the electric bandwagon.
But BMW is only part of the threat to Tesla. Mercedes-Benz, Audi, Jaguar, Chevy, Porsche and Volvo, among others, are all-in on electric cars. And, as much as it pains Tesla fans to hear this, all of those car companies are significantly better at making cars. They already have supply chains, multiple manufacturing facilities, thousands of employees and shed-loads more money and resources. Once these companies get rolling and start pushing out EVs, there really isn’t a chance Tesla can catch up. It’s having issues just manufacturing one volume product in a limited capacity right now. Imagine if it has to keep up with just on volume competitor?
The Tesla Model 3 is an impressive car, especially from a small-volume manufacturer, of that there’s no question. However, that isn’t good enough to survive the onslaught of mainstream brands all offering their own competitors, with multiple options, better build quality and far superior manufacturing. If a customer likes a Tesla but can’t get one for another year, due to supply restrictions, but can get a competitor of equal range and performance at a similar price right now, which do you think they’re going to buy?
Tesla got by for a long time by being the only game in town but that’s not going to be the case for much longer. To survive, Tesla is going to have to match both the mainstream volume EVs for the masses as well as the high-performance exotic EVs of brands like BMW, Porsche and Audi. And that just doesn’t seem like a realistic possibility.
[Source: Motor Trend]
Wishful thinking here.
Answer this basic question: From whom will BMW electric cars be stealing market share? If you think Tesla you are dead wrong.
For BMW to make a car better than the Model S or Model 3, they will need to make a car better than the 3 series or the 5-7 series cars. In that case they will sell EVs at the expense of their own market share for ICE vehicles.
They have no real market share to gain as Tesla, by your own words, is a small volume manufacturer. They don’t have enough market share (yet) from which BMW can steal for growth.
Tesla also has no legacy ICE plants and equipment that would have to be mothballed in the case of BMW.
It’s not exactly wishful thinking by us, just reporting a Motor Trend article. Also, I don’t think BMW, or any other premium manufacturer, is trying to steal market share from Tesla.
The article was more about the fact that Tesla won’t be able to gain any more market share, or will see its own diminished, as more premium brands take over the market. Why would a customer buy a Tesla, with its lack of quality and reliability along with its longer wait, when they can buy an electric car with similar range and power from a more reliable and reputable manufacturer, of which there will soon be many to choose from?
That’s really the point of the article.
Still wishful thinking. Tesla only needs to take about 2% of the total market share to be super successful.
They already have 25% in the Model S space. They will gain similar in the Model 3 space, as soon as next month in the US actually.
And what makes anyone believe the legacy manufacturers like BMW and GM or Toyota, can make a compelling EV. Ask this second question: what vehicle is BMWs lineup is the i3 intended to compete with? Which one in GMs lineup is the Bolt targeting? Or if you will, which vehicle from any other manufacturer are they targeting? Tesla targets 3 series and 5/7 directly and is killing them.
I’m telling you, they have noticed. Problem is by the time BMW releases an EV better than the model 3 or Model s it will 3-4 years down the road. What makes you think Tesla will not be 3-4 years further down the road than they are already?
Why would BMW target the i3 against an existing car when it was never going to be able to compete in the mass market at a given price point? That would have made no sense at all. i3 was developed based on what BMW learned from the MiniE and ActiveE programs, and was designed to fill a gap where they believed it had most chance of competing, and that would NOT have been when up against an existing model.
Also … “Tesla targets 3 series and 5/7 directly and is killing them” what planet are you on? Ignoring $1000 deposits for Vaporware Teslas, BMW has SOLD and PRODUCED and DELIVERED more than FIVE times the number of (ageing and soon to be replaced) 3-ers ALONE that Tesla has delivered of ALL models in the period since Q1 2015!
If you want to like the products, like the products, if you want to like the man, like the man, that’s all fine, but at least try and keep some perspective John Ford!
@Matt Stokes, “BMW has SOLD and PRODUCED and DELIVERED more than FIVE times the number of (ageing and soon to be replaced) 3-ers ALONE that Tesla has delivered of ALL models in the period since Q1 2015!”
Tesla Model 3 is stealing market shares of BMW 3 series, Mercedes C-Class, Audi A4, Lexus IS. The below graph shows the market share of those brand in the last 6 months. https://electrek.files.wordpress.com/2018/05/screen-shot-2018-05-02-at-4-16-11-pm-e1525294082674.jpg
I certainly won’t deny that Tesla will eat into the market – in markets that it is able to supply – I would be curious to see a similar comparison with other key markets… but that doesn’t change the global totals. I can’t speak for the A4/IS/C, but the decline in the 3-er numbers most likely reflects the fact that the 3-er is in a sales contraction phase at the end of its life span, this is to be expected and happens to every model in every generation.
Also, there are more than 5 cars in the US premium mid-size segment, so I’d be curious to see the charts in full context, Tesla are unlikely to be the only manufacturer on the up.
Sales US 2018
Tesla Model S vs BMW 5
JAN 800 vs 2.456
FEV 1.125 vs 3.185
MAR 3.375 vs 4.397
APR 1.250 vs 3.056
Total 2018 1Q
Model S – 6.550
BMW 5 – 13.094
Total 2017
Model S – 27.060
BMW 5 – 40.658
In 2017 BMW sold 50% more BMW 5 than Tesla S.
In 2018 BMW is selling 100% more BMW 5 than Tesla S.
Is Tesla S losing market share to BMW 5?
BMW 5 series isn’t in the same class as Tesla Model S for 2 main reasons: Average selling price and size. Average selling price of BMW 5 series is much less than Model S and EPA rates 5 series as midsize sedan while Model S is large sedan. Tesla outsold Mercedes S-Class and BMW 7 series in US and in Europe too.
“Tesla Model S is the best-selling US luxury sedan, by a wide margin. EV-maker lengthens lead over Mercedes, BMW.
The Model S sales were almost double the sales figures for the No. 2 US luxury sedan, the Mercedes-Benz S-Class, and more than double the sales of the BMW7-Series. No other model moved more than 2,000 units during the quarter. In all, the Model S accounted for almost a third of the country’s third-quarter large luxury sedan market, which also includes models from Audi, Lexus, Porsche, Jaguar, and Maserati.”
Source: https://www.autoblog.com/2016/10/14/tesla-model-s-best-selling-us-luxury-sedan/
“Tesla Model S Outsold Mercedes S-Class And BMW 7-Series In Europe
Sales of the Tesla Model S in Europe have increased by 30 percent, with 16,132 cars sold in 2017. Mercedes sold 13,359 S-Classes for the same year, an increase of 3 percent. BMW sold 11,735 7-Series models, a 13 percent decrease over 2016.”
Source: https://www.carscoops.com/2018/02/tesla-model-s-outsold-mercedes-s-class-bmw-7-series-europe/
“According to Tesla, the Model S competes with the BMW 7 Series and Mercedes-Benz S-Class, though we’ve recently learned that’s not true. In fact, by nearly all metrics, the Tesla Model S competes more with the BMW 5 Series and Mercedes-Benz E-Class.”
“Both cars have various different specs and trim levels, so let’s compare the Goldilocks variants of both — the BMW 540i xDrive and Tesla Model S 75D. Both of these cars are around the same price (though the 540i would need quite a few options to match the Model S’ price), are about as fast as one another (the 540i is a touch quicker) and both come with the about same equipment levels.”
Source: https://www.bmwblog.com/2016/12/02/bmw-5-series-vs-tesla-model-s/
Opinion of a BMW blog is obviously bias against Tesla. Independent opinions are more neutral. EPA doesn’t rate BMW 5 series as large car as Tesla Model 3.
autoblog.com: “Tesla Model S is the best-selling US luxury sedan, by a wide margin
“Bloomberg News, which first reported the US sales figures, said the Model S was the country’s best-selling luxury sedan in the third quarter, and by a wide margin.”
Source: https://www.autoblog.com/2016/10/14/tesla-model-s-best-selling-us-luxury-sedan/
forbes.com: “Tesla Model S, The Biggest Selling Luxury Car In Europe”
Source: https://www.forbes.com/sites/neilwinton/2016/04/06/tesla-model-s-the-biggest-selling-luxury-car-in-europe/#ba0b77775884
I promise you that we are not biased towards them. Many of us are fans of what they do.
This BMWblog.com article(https://www.bmwblog.com/2016/12/02/bmw-5-series-vs-tesla-model-s/) is obviously bias against Tesla in comparing 5 series with Model S.
I posted 2 links from independent agencies comparing Model S with S-Class, 7 series … Follow are other articles from third parties:
https://insideevs.com/tesla-model-s-outsells-german-flagships-in-europe/
“According to the JATO Dynamics, Tesla is disturbing German luxury
flagship sales in Europe, forcing brands like Mercedes and BMW to act
quickly.
Tesla Model S – 16,132 (up 30%)
Mercedes S class – 13,359 (down 3%)
BMW 7 series – 11,735 (up 13%)”
JATO Dynamics is a British company.
Then I guess you have not read the full article, see the ending here. Nothing more fair than this.
Both cars are very good cars and both have impressive performance, luxury and technology. Though both have very clear cut goals that differ from each others’ greatly. The Tesla Model S is clearly the more technology and luxury oriented. It is focuses solely on offering the driver the easiest, quietest and more technological driving experience possible. Whereas the BMW 540i seems to be after offering the driver a luxurious driver’s car that’s equally as fun to drive as it is comfortable to relax in. The BMW 540i seems to be the more well-rounded car, as it can be more cars than the Model S, as it can be both luxury car and sports car. But if it’s techno-luxury you’re after, the Model S seems like the more clear-cut choice.
I read that article in full, the obvious bias is comparing the sale volume of a large car with a midsize car. Why other entities compare Model S with S-Class, 7 series … not 5 series and E-Class ?
JATO Dynamics is a British company and it favors American car company over European car companies ?
Other obvious biases are: comparing Tesla Model 3 with Toyota Plugin Prius by other haters. What are their points ? Plugin Prius can be used in city and consumes mostly electricity and can be used for long distance with minimum refueling time.
One of the reasons they compared to the BMW 5 is because the Model S in terms of exterior size is closer to the BMW 5 than to the BMW 7 (normal version, in the long version the diference is huge) . Okay, the Model S has more interior space than the BMW 5, but the VW Passat also has more interior space than the BMW 3 and is compared to the BMW 3! In terms of exterior size, the difference between the VW Passat and the BMW 3 is much biger than the difference between the Tesla S and the BMW 5 and this isn’t a reason not to compare the Passat with the BMW 3!
That’s not stopping Tesla taking 5 series sales.
If BMW doesn’t target the i4 to kill the 3,4,5 series, than Tesla wins.
Semantics. If EV is the future, BMW will strive to maintain or grow market share in terms of number of cars sold. If EV is not the future, BMW will strive to maintain or grow market share in terms of number of cars sold. It has an existing customer base the overwhelming majority of which are still renewing their vehicles with ICE or PHEV vehicles, neither of which Tesla can offer. It will continue to deliver significantly more cars than Tesla for quite sometime and will be generating a profit whilst doing so. It will phase in products as the market demands it and will (relatively) successfully manage it’s manufacturing operations and supply chains accordingly… which I think is a realistic viewpoint because they have 100 years (not quite) experience in adapting, innovating and evolving in the automotive design and manufacturing arena… whereas Tesla has a CEO that thought he knew better than the rest of the industry.
Also, I think you’re attempting to spin BMW’s comparatively massive manufacturing capability as a bad thing. BMW can develop, produce, sell, deliver and support 2,000,000 cars per year across the world. Tesla can produce two low volume vehicles in one factory, and are not competent enough, cash rich enough, large enough or ethical enough to deliver it’s volume product, despite initially taking deposits for a car at a price point they’re not meeting (for general population) and subsequently taking deposits for at least two further products it’s yet to deliver. They have to cherry pick which vehicles they can produce and which markets they can supply because they do not have the capability or capacity to do otherwise. I live in BMW’s 4th largest national market… If I order a Model 3 today, I don’t get it till 2021 (assuming Tesla get manufacturing on track TODAY)… on the plus side, by that stage the appalling build quality observed by independent professionals may have been sorted.
And lets not forget one other thing… it’s not like BMW are not used to running up against direct competitors with similarly appealing market propositions yet still continue to prosper? It’s not BMW are not used to operating in a market where more cost effective vehicles are on offer, yet they continue to prosper. It’s not like BMW have never had to adapt to new technology in order to survive and yet they prosper.
What he said ^ :)
Until they have battery plant capacity for delivering cells for 2 million vehicles, BMW’s EV market share (like everyone elses) will remain capped by production. The market is there, Tesla did the hard work in blazing that trail. Now it’s up to legacy manufacturers to step up and meet demand.
What should deservedly kill Tesla is grossly over estimating what they could deliver, whilst doing an awful job of being a car manufacturer – and taking money off people to crowdfund supporting both these things.
I never used to be anti Tesla, but I can’t tolerate Musk’s continuing campaign of bull **** and their continued incompetence… the coming onslaught of EVs will be good for the consumer, that is the main thing.
Elon is the Tesla killer.
You are the Tesla killer.
Tesla quality issues are over according the the Tesla Model 3 facebook group. As a matter of fact, Electric asked some repair people to compare the Model 3 to BMW’s coming in for work. The Tesla’s where better.
Tesla’s biggest worry should be the years of experience established automakers will apply to competing electric cars. Look at the seven seat Model X, when it first debuted it had power second row seats, and the seat backs were fixed. Most mainstream seven seat SUVs have a second row that is manual, that slides, and can fold. People noticed the problem instantly, and about a year and half later Tesla finally figured out why most manufacturers have manually operable second row seats. It’s like a teenager, versus an adult, the teenager thought falcon wing doors would be cool, and the adult has the experience to know they’re not practical.
In a couple of years, there will be so many EV options, that’s the real test
BMW is not a Tesla killer, but the electric car evolution could kill BMW (or/and other brands) if they’re not careful. It’s not that they won’t be able to build good electric cars but the problem is their heritage industry they have to get rid of. The electric car more then ever is a car assembled from pieces made by suppliers, this is necessary to make it affordable and is the inevitable future for car production just like it was for smartphones and other electronics. Therefore the industry has to lay of hundreds of thousands of workers, close factories, change productions lines etc. Also the dealer network has to be reviewed completely. All these costs, that Tesla does not have, are on top of the development costs of electric cars. Tesla has a huge advantage here.
“And, as much as it pains Tesla fans to hear this, all of those car companies are significantly better at making cars.” Yes, as the automotive punditry have been telling us for the last decade. The typical spin has traditionally been, “IF the big manufacturers ever decide to build EVs, they will clean the floor with Tesla”. Hmm. Remember when Chevy Bolt was going to beat Tesla 3 to market and steal all of its market share? Or the Kona and eNiro? Or the i-Pace and e-Tron? Hmmm. So why havn’t any of these toppled Tesla?
Two reasons: first off, Tesla is the trusted marque. Mercedes can have 100 years of heritage building smoking horseless carriages, but their brand is rendered meaningless in the EV marketplace. Chevy has now tarnished their EV brand twice over by simply refusing to build enough cars, and refusing to sell them to customers who want them. Despite beating everyone to market 2 decades ago. Reviews of the e-tron spell this out… Sure its a big comfy car, but it’s too heavy, has lower range than it should because of , andthat weight has lackluster tech/touchscreen capabilities. What is excusable in a petrol car simply doesnt meet consumer expectations set by market leader: Tesla.
Secondly, and this is the big problem: EVs aren’t just cars with a different power train. Batteries are expensive and difficult to manufacture at scale and what we have seen is that any market where China is the major consumer is not one where western companies have any hope of putting in orders. Tesla’s battery factories were long seen as liabilities by analysists, but are in fact their great asset. A new Tesla may have a 2 week delivery wait, but a new Kona has a year wait, and not because Hyundai doesn’t know how to make cars. But because they can’t source the batteries. China is committed to transforming it’s entire transportation infrastructure to electric, so they are buying up all of the batteries. They simply cannot be outsourced like tires or seats or touchscreens, not in this market.