Tesla Motors Inc (NASDAQ:TSLA) now has 8.4% of the U.S. luxury automotive market, according to a report released by the Electrification Coalition last week. The Coalition reported that the 8.4% consists of an average for the first six months of the year. In Q1 of this year, the Model S outpaced the Audi A8, BMW 7-series and Mercedes S Class sales.
The Tesla Motors Inc (NASDAQ:TSLA) Model S has been selling for only around 14 months and BMW’s 7-Series has been selling ever since 1977. Audi’s A8 started selling back in 1994. One of the reasons why the Model S has become a car of choice is because of the acceptance of plug-in electric vehicles.
Tesla Motors Inc (NASDAQ:TSLA) Elon Musk is not just gunning for the luxury car market. He has made it known that the company wants to launch a $30,000 car for the masses by 2016. This is dependent on the decreased cost of its batteries. The Electrification Coalition expects battery costs to fall by almost half by 2020.
General Motors and Nissan are both researching how to reduce EV battery costs by selling used batteries after their automotive lifecycle is finished. The used EV batteries can still have 70% of their initial capacity after around 10 years, according to Fool.com.
Between 2010 and 2011, around 17,000 electric vehicles were sold. That number jumped to over 52,000 in 2012. In 2013, around 41,000 electric vehicles have been sold up until now. This goes to show that auto consumers are continuing to adopt electric vehicles.