Tesla's Model 3 Is Hurting Traditional Automotive Sales
Dealerships in the US have noticed a negative impact since the Tesla Model 3 has gone on sale.
Jeff Dyke, the President of Sonic Automotive who operates over 100 dealerships in the US for many different brands recently stated that ever since Tesla released the Model 3 sales of cooperating brands have taken a severe hit — mentioning that BMW sales, in particular, were negatively affected.
“There’s no question. I mean… they’re calling out to sell well over 300,000 cars this year; they sold a lot of cars last year. [...] you can say all you want about their service problems and all of this, they just keep selling more cars. And I don’t know if it’s more of a cult than it is anything else, but my hat off to them. They’re selling lots of cars [...] I can tell you that I’ve spent a lot of time in manufacturer meetings and five years ago Tesla was just not even a real big topic and today it’s the top of everybody’s board and it needs to be.”
This doesn't come as a surprise to me, and many others. The automotive market has been pretty dull for many years, and Tesla's introduction into the market years ago finally spiced up the automotive world with high tech vehicles which were fully electric, something all other automakers appeared to think was impossible.
Years after the first Tesla Model S was announced the Model 3 is bringing this High Tech electric vision to the masses. Not only do other manufacturers need to build an electric vehicle, but they need to make one which can compete with Tesla on features.
Tesla has been continually updating their cars with free over the air updates and adding new and fun features. Some of the features are highly useful like the new Sentry mode, and others are just fun, like the feature to have the Model X dance. No one ever said cars need to be boring, its just something I feel like we all accepted, except Tesla.
In the end, if I were to buy a new vehicle today, it would be a Model 3. Not because it's fully electric, but I genuinely think its the best car on the market.