Analyst: Tesla owners are willing to pay way more for the Model S than a traditional car
Tesla Motors
The big takeaway is that Tesla owners aren't necessarily all wealthy early adopters of high tech toys.
About 70% of them moved to Tesla from cars that cost less than $60,000, Jefferies noted.
These owners were happy to pay more.
"On average, owners were willing to pay 60% more for a Tesla," Dolev wrote.
The Jefferies survey also showed that 65% of the top 20 gasoline-powered alternatives the owners considered before buying their Tesla cost less than $60,000.
Dolev initiated coverage of Tesla in May, with a "buy" rating price target of $350. He's since raised that to $360.
What we can glean from this is that Tesla is indeed special - so special that buyers are willing to pay substantially more for the privilege of Tesla ownership than to park a traditional car in the driveway.
The Model S is so appealing that it gets people to buy a car way out of their price range, or convinces people who wouldn't otherwise spend a lot of money on a car - to spend a lot of money on a car.
To its credit, Tesla has worked to expand ownership opportunities for prospective Tesla buyers. Earlier this year, the company introduced the $58,000 entry level Model S P70D. In addition, the company has offered leasing options to buyers for several years and recently set up a certified preowned program.
On Tuesday, Tesla shares closed at $269, up slightly.
- India's hidden gems where the thermometer doesn't cross 20 degrees
- India's foreign exchange reserves rose by USD 2.6 billion in the week ending May 10: RBI
- India is one of the strongest markets in the world with its fundamentals: Red Hat CEO
- Trade ties with India suspended due to 'heavy duties': Pakistan Foreign Minister
- Luxury “floating” beach unveiled in France; Critics term it an “ecological aberration”
- Nothing Phone (2a) blue edition launched
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market