Tesla’s stock is up 270% YTD, and has jumped to a new record high this week, giving the electric vehicle maker a valuation of more than $208 billion. Tesla is now the most valuable car company on the planet.
Tesla’s market cap has surpassed Toyota’s, and the company is worth more than many of its “competitors combined, such as Fiat Chrysler ($20 billion), Ford ($24 billion), Ferrari ($32 billion), General Motors ($36 billion), BMW ($41 billion), Honda ($46 billion) and Volkswagen ($74 billion).”
The past few months have been great for EVs in general. A combination of pandemic worries, loss of income, climate change, and concern about the future decimated the car industry, but bolstered the purchase of EVs. As EV production has increased, so has governmental dedication to making sure their constituents can charge their cars. Both Massachusetts and Florida are expanding already-present rebates, and many other states are committing to EVSE infrastructure.
It’s the right time for EVs in general, but there seems to be something particularly attractive about Tesla’s Model 3. An electric vehicle outselling every gas-fueled vehicle in its class almost sounds like science fiction, but it’s reality for this versatile vehicle. It’s the best-selling EV in the U.S., and the best-selling car overall in the U.K.
A Forgotten Demographic
Why is this vehicle flying off the assembly line? Tesla may have been the only car company to remember a forgotten demographic. Known in the U.K. as “Mondeo Man” (because their car of choice was always the Ford Mondeo), this younger mid-level executive is always traveling for his or her job, logging hours on planes (though not at present) and miles behind the wheel of a car, putting 12-20,000 miles on a car each year, and making gasoline a significant yearly investment.
Most of those drivers either changed to luxury vehicles like BMW, Mercedes, and Audi, or are now driving the ever-popular SUV. The mid-range executive however may be fearful right now about shelling out the cash for a luxury vehicle, and want less vehicle than an SUV for constant driving and parking. There are few vehicles left in the mid-range sedan class, and the customer base was swiftly scooped up by Tesla.
The Model 3 is smaller than the SUV and more efficient than pricier choices. As opposed to luxury vehicles and green SUVs, which cost between $50,000-$85,000, the Model 3 starts at a refreshing $37,990. Its range is 322 miles, much longer than most gasoline powered vehicles, and has AWD. Its performance in the words of Forbes, “would humiliate even a hardcore BMW fan.”
EVs also cost around $485 to fuel and maintain each year, while a gas-fueled vehicle costs around $1,117, on average, not for hardcore drivers. Maintenance on an EV is also virtually non-existent, even when pushed harder than the average driver.
Detroit’s plan to keep Tesla out of the game by denying them physical dealerships may also have backfired in the age of Covid-19. Direct sales, a technique often used by Tesla, seem to be pandemic-proof, since customers don’t have to physically go to a dealer and interact with others to buy a car, and online orders aren’t stopped by enforced quarantines.
In times when nothing is certain, the Tesla 3 seems like a solid bet. While its takeover of America is certainly slower than that of Europe, its popularity proves Americans will buy EVs—when they’re practical. For those who travel frequently, it would be difficult to do better than the Model 3. It seems the right EV and the right customer came together at the right time for buyers who need a vehicle that can go farther, faster, less expensively.
Blink’s newest IQ 200, which can handle an 80-amp output on a 100-amp circuit, can charge the Model 3 in under 3 hours. So if you choose this popular, efficient vehicle, Blink can get you where you need to go even faster.