Tesla VS BMW: ridiculous article from CNN/Fortune

[PhilBa]

http://money.cnn.com/2013/07/25/autos/bmw-i3-tesla.fortune/

Idiot journalist... Let's compare apples to oranges and come to a conclusion.

 

[rolosrevenge]

But their conclusion was advantage Tesla.

 

[PhilBa]

huh? I see no overall conclusion. In fact, the most telling line (about the authors bias) is "That's all about to change", implying that high flying tesla is about get grounded.

 

[evme]

But their conclusion was advantage Tesla.

The doesn't help when they write fud like this:

In electric cars, what counts is how far you can go on a single charge, and the range numbers that are displayed on the instrument panel usually can't be duplicated in the real world. Tesla says the Model S can travel up to 300 with a beefy battery. But an Edmunds.com tester discovered he burned up 251 miles of indicated range after covering just 121 miles, which made his ride home a bit uncomfortable.The i3 will have an optional range extender, a motorcycle-like gasoline engine that can power the car for 186 miles, BMW says, which should prevent embarrassing roadside breakdowns. Otherwise, the car is said to be able to travel about half that distance, 93 miles, on a single charge. But we won't know for sure until the cars are actually on the road.
Advantage: tie

 

[ElSupreme]

Coming later in 2014 from the BMW "i" brand are the i8 coupe and convertible, extended-range plug-in hybrids that can go about 19 miles on electricity alone before the gas-powered range-extender kicks in. Also made of carbon fiber with an aluminum chassis, the sports cars will be capable of head-snapping acceleration -- zero to 60 in around five seconds -- and carry an equally head-snapping price, expected to be around $125,000.

WTF? No mention of Model S $90k price tag, and head AND NECK snapping acceleration -- zero to 60 in around 4 seconds? Not to mention it is already in market?

 

[dm33]

Incredibly bad article. I do wonder what it takes to get published these days. Or maybe these folks are totally over their heads if there's anything remotely having to do with technology.

I lost it when they said tesla hasn't been through a downturn. Like 2008 didn't count but was enough to make GM and Chrysler go bankrupt, yet tesla survived... just barely.

 

[brianman]

selling them for upwards of $90,000 apiece

expects to sell 21,000 of them this year at prices starting at $72,000 before any federal tax credit

Well which is it? Are they "upwards" of $72k or $90k? WTB consistency in professional publications.

 

[Soflason]

Such a misleading article, it's as if they purposely left out all the best Model S stats to try to even the playing field...

This article is far more reasonable:
Tesla Versus the Luxury Automakers | MIT Technology Review

 

[PhilBa]

There is another point that I think bears much closer scrutiny - distribution. The old model is the dealer network. However, the Tesla model of direct to consumers is totally disruptive which is why the dealers are fighting it. The author clearly sees this as a big negative for Tesla. But, the direct model leaves more profit in the automakers pocket so it is highly desirable. Also, the process of buying a car online is something that I believe most Americans (most consumers anywhere for that matter) will come to expect. Being able to pick out your features and order your car just the way you want it is such a fantastic experience. I didn't have to take the blue one because it was on the lot - I got exactly what I wanted. Once there is real competition, at least in theory, direct sales should benefit the consumer in lower prices. But until that point, it looks like an advantage for Tesla.

Edit: I forgot to mention, the other automakers can't move to the direct model easily because they need to keep their dealer networks happy. It's very hard to pivot your distribution model when billions in revenue are at stake.

I believe that in 10 years, this change in distribution will be viewed as equally significant as any of the technological innovations of Tesla.

 

[jkirkebo]

Well which is it? Are they "upwards" of $72k or $90k? WTB consistency in professional publications.

Starting at $72k and selling for an average of $90k is probably not far from the truth. That's how I read it anyway.