Why is the Model 3 compared to the BMW?

[Barklikeadog]

If the Model 3 is truly meant for the average car buyer, then why isn't it compared to the Camry, Accord, Civic, Elantra, Altima, Corolla...
Why is it compared to entry level luxury cars? Is it just because of price? Shouldn't the comparison discussion be about the Model 3
being 5k more expensive than the above mentioned vehicles? BMW only sells about 75k 3-series every year, 400k of the Camry are sold.
The 3Series is ranked 75th in cars sold for 2016. The A4 is 99th, the C-Class is 72nd.

Those who want to drop 50k on a luxury car are more likely to buy the Model S IMHO.
Every year 2 million people buy the average sedans I listed above... which tend to start under 30k and price up into the 40s with all options.

I believe that 2 years from now when Tesla has sold several hundred thousand Model 3s, the biggest losers will be Toyota, Honda, etc, not BMW or Mercedes.

Thoughts?

 

[TexasEV]

Because Elon compared it to the Model 3 when the car was being developed.

 

[Zythryn]

Tesla's target market IS the BMW 3 series. Elon himself has stated this a number of times.
It is an entry level luxury sedan. BMW 3 series, Audi A4, Mercedes C class, etc.

This was never meant to be a 'car for the masses'. It was meant to be less expensive than the Model S.

 

[Barklikeadog]

I wasn't aware of that comparison, I thought Musk said that the Model 3, which would be step 3, would be an 'affordable $35,000 car designed for the masses.'

 

[mtndrew1]

The Model 3 is a rear wheel drive performance sport sedan from a premium brand that can be optioned up in lockstep with parallel cars from Mercedes-Benz, Lexus and BMW. That's why.

The reason the Model 3 dips down into Civic mindshare at all is because if one does a spreadsheet they can make an aspirational case for jumping up a product class into the Tesla from a more pedestrian product via tax credits and fuel cost deltas.

 

[Saghost]

Performance, features, appearance - the 3 was always intended to be entry level luxury - to still be a Tesla, with all that implies in people's heads.

The BMW 3 series, A4, C class and maybe Lexus IS are the reference to compare it to.

What's interesting is that if you look at TCO, it probably can compete with the Camry and Accord on overall cost - while still being a class or two above them in performance/features/looks. When folks figure that out, it's going to be a lot harder to sell those other cars...

 

[JonathanD]

Aesthetics and performance. Accords and Camrys are the automotive version of household appliances, and for people who think of cars that way they do an excellent job.

 

[JoaoD]

Model 3 was meant to be the more affordable car, the one more people can afford. It was never meant to be the car everyone can afford.
Elon always put it up against the BMW 3 serires, Audi A4 and Mercedez C class. It said it would be the best 35000$ car you could buy, so it's only far to compare it to cars in that price range.
The plan was always to expand Electric vehicle development and hope that other manufacturers pick the rest of the market. Tesla said they will only make fast cars, so probably we will have to wait for another company to come up with a mass market electric vehicle that competes with the Camry, Accord, Civic, Elantra, Altima, Corolla and others in the same price range.
There will be many people comparing it to the mass market cars but that is because there is no better electric competitor for less than 35000$, just like the Model S was compared to the mass market cars and the luxury market cars, because there was no other long range electric vehicle.

 

[smilepak]

IMO, Comparing a Model 3 against BMW 3 Series or Mercedes C class is not a fair comparison. At best, Model 3 should be compared with a Toyota Camry / Honda Accord series.

While the starting price point of a Model 3 is 35K and that put it in the range of a BMW 3 Series or Mercedes C class, the features and total cost of ownership cause it to NOT be in that comparison.

A Model 3 being 35K minus any subsidy and minus general maintenance (oil change, transmission change, etc.,) and minus gas cost, the total cost of ownership should be more towards the Toyota Camry side.

A Long Range Model 3 w/ Premium Package being 49k might be comparable to a base BMW 3 series or Mercedes C Class, but that would mean price point is different, once reduced total cost of ownership they might be similar.

 

[TexasEV]

I wasn't aware of that comparison, I thought Musk said that the Model 3, which would be step 3, would be an 'affordable $35,000 car designed for the masses.'

Yes, the masses of people who buy BMW 3 series, Audi A4, and Mercedes C-class.

 

[Saghost]

IMO, Comparing a Model 3 against BMW 3 Series or Mercedes C class is not a fair comparison. At best, Model 3 should be compared with a Toyota Camry / Honda Accord series.

While the starting price point of a Model 3 is 35K and that put it in the range of a BMW 3 Series or Mercedes C class, the features and total cost of ownership cause it to NOT be in that comparison.

A Model 3 being 35K minus any subsidy and minus general maintenance (oil change, transmission change, etc.,) and minus gas cost, the total cost of ownership should be more towards the Toyota Camry side.

A Long Range Model 3 w/ Premium Package being 49k might be comparable to a base BMW 3 series or Mercedes C Class, but that would mean price point is different, once reduced total cost of ownership they might be similar.

TCO is a valid point, one I made myself above.

What features do you believe the 3 lacks that makes it not suitable to compare to the 3 series or A4?

It looks to me like you're getting a 3 series/A4 class car for a lot less total money...

 

[Barklikeadog]

IMO, Comparing a Model 3 against BMW 3 Series or Mercedes C class is not a fair comparison. At best, Model 3 should be compared with a Toyota Camry / Honda Accord series.

While the starting price point of a Model 3 is 35K and that put it in the range of a BMW 3 Series or Mercedes C class, the features and total cost of ownership cause it to NOT be in that comparison.

A Model 3 being 35K minus any subsidy and minus general maintenance (oil change, transmission change, etc.,) and minus gas cost, the total cost of ownership should be more towards the Toyota Camry side.

A Long Range Model 3 w/ Premium Package being 49k might be comparable to a base BMW 3 series or Mercedes C Class, but that would mean price point is different, once reduced total cost of ownership they might be similar.

I would think a mass market car is supposed to appeal to the mass market, not a very specific and small entry level luxury market.

i really do think that most of the M3 buyers will come from the group of most commonly purchased $30k sedans who want something cool.

 

[zer0cool]

Tesla is a premium brand. Honestly Tesla cars are built exactly to compete with BMW. They are not that luxurious on the inside and have good driving dynamics and pretty tight suspension.

A car brand's prestige and statue is a very important part of its value. If EVs become cheap enough and Tesla wants to build cheaper cars in the 20-30 range well equipped, it will probably need to establish a new brand to sell them.

 

[Barklikeadog]

Yes, the masses of people who buy BMW 3 series, Audi A4, and Mercedes C-class.

I just figured more Model3 buyers will emerge from the mass of 2 million buyers and not the mass of 200k buyers. If Musk moves 200k cars next year, that is more than the BMW + C + A4 put together... and I'm guessing those automakers will still move plenty of those sedans.

 

[stopcrazypp]

I wasn't aware of that comparison, I thought Musk said that the Model 3, which would be step 3, would be an 'affordable $35,000 car designed for the masses.'

I guess you haven't been paying any attention at all these last couple of years?
2017 Tesla Model III Targets BMW 3 Series | Edmunds
Electric SUV and BMW 3-series rival next for Tesla, says Elon Musk | Autocar
Tesla Model 3 specs: what do competitors Audi A4, BMW 3-Series tell us?

 

[stopcrazypp]

I just figured more Model3 buyers will emerge from the mass of 2 million buyers and not the mass of 200k buyers. If Musk moves 200k cars next year, that is more than the BMW + C + A4 put together... and I'm guessing those automakers will still move plenty of those sedans.

The 3 series alone sells around 400-500k vehicles a year. Keep in mind the Model 3 will be sold worldwide. Tesla simply does not have the manufacturing capacity to expand to millions of vehicles yet.

Also EVs that target economy cars (with EV premium tacked on) inherently fall on their face in sales. You can get a loaded Camry for under $35k. While $35k gets you a stripped down entry level premium car if you go with a BMW or Audi. It's obvious which market is easier to target and actually result in more sales (it's the latter).

 

[chronopc]

If the Model 3 is truly meant for the average car buyer, then why isn't it compared to the Camry, Accord, Civic, Elantra, Altima, Corolla...
Why is it compared to entry level luxury cars? Is it just because of price? Shouldn't the comparison discussion be about the Model 3
being 5k more expensive than the above mentioned vehicles? BMW only sells about 75k 3-series every year, 400k of the Camry are sold.
The 3Series is ranked 75th in cars sold for 2016. The A4 is 99th, the C-Class is 72nd.

Those who want to drop 50k on a luxury car are more likely to buy the Model S IMHO.
Every year 2 million people buy the average sedans I listed above... which tend to start under 30k and price up into the 40s with all options.

I believe that 2 years from now when Tesla has sold several hundred thousand Model 3s, the biggest losers will be Toyota, Honda, etc, not BMW or Mercedes.

Thoughts?

Why do people think the Model 3 is mean for the average person? From what I understand, the Model 3 is meant to be a mass produced car. Seems like Tesla's goal was to make a car half as expensive as a Model S. Whether that is luxury class or not is subjected. Although Elon did mention they wanted to compete with cars like the 3-series and C-class. If you factor in gas savings throughout the lifetime of ownership, the Model 3 compares pretty well to cars such as the Camry.

 

[JonathanD]

I just figured more Model3 buyers will emerge from the mass of 2 million buyers and not the mass of 200k buyers. If Musk moves 200k cars next year, that is more than the BMW + C + A4 put together... and I'm guessing those automakers will still move plenty of those sedans.

I've seen this movie before Tesla creates demand with their product. Some of it comes in the form of taking market share from competitors, but they also pull consumers up the price ladder because of their aspirational products.

 

[Troy]

This is what Elon said (source):

 

[Barklikeadog]

This is what Elon said (source):

He also said we would be colonizing Mars in a few years, a car would drive from NY to LA this year without the driver ever touching anything, the robot uprising will occur... pretty much anytime now, falcon heavy will launch in 2013, I'm not going to get into the hyperloop or Model X promises.