The Tesla Model S was the best car the company has ever tasted. Based on the Customer Reports, the Model S was good. However, they must rethink its own rating scale because the Model S was off the charts. The Model S had major capacities that are simply unmatched in the industry. This covers speed, comfort and technology. Tesla designers took advantage of the compact nature of electric drive systems. They do not have bulky engines and batteries that fit snugly into the floor. Thus they can make a car with extraordinary spaciousness. Plus, they have rear-facing seats in the back.
However, by 2017, Tesla sold more than 100.000 a year from the Models (its SUV sibling). But once the Model 3 and its SUV counterpart, the Model Y came, the sales became much more expensive. It led to Tesla’s dramatic fade. The reason is because the Models 3 and Y are much more affordable. Recently, a Model 3 starts around $40.000. While the model starts around $88.000. In the same scenario, the Model X price is $98.000 while Model Y is only $47.000. In addition, compared to most car models, both Model S and X are well past retirement age. Thus, they only make up a small portion of the company’s annual sales, which is only 5% last year.
On the other hand, why would Tesla continue to make these models instead of concentrating on the most popular ones? The answer could be, these aging models are still profitable. They could be of use for Tesla to use price cuts to boost sales. A head of auto testing at Consumer Reports, Jake Fisher, argued that Model S is not only old but also is not as good as it was. Based on his analysis, it is not only because of it age or competitors, but Tesla made it worse.
