Tuesday, November 30, 2021
News Tesla is Not a Premium Brand, According to BMW

Tesla is Not a Premium Brand, According to BMW

BMW's CEO doesn't consider Tesla a premium brand

There is no doubt that Tesla has changed the game in the automotive industry. Its dominance of the electric segment certainly upsets the established players, but the carmaker founded by Elon Musk is now forcing the entire industry to turn to this “cleaner” mode of propulsion.

Despite its presence in the upper end of the market – with its Model S and Model X in particular – Tesla is not considered a “premium” carmaker, according to BMW‘s CEO Oliver Zipse, who said so in an interview with the German publication Handelsblatt.

The head of the Bavarian brand reiterated that Tesla is experiencing strong growth thanks to lower prices, but that BMW’s standards are not the same as those of the brand that originated in California. Oliver Zipse believes that Tesla does not have the same vision when it comes to the quality of workmanship and reliability of its products. According to Zipse, BMW thinks differently about satisfying its customers.

This announcement comes after the publication of U.S. sales results after the first nine months of 2021, Tesla came close to BMW, with a little over 230,000 units sold against a little over 245,000 on BMW’s side. However, the German carmaker has a very wide range of vehicles with several types of engines, unlike Tesla, which only has four models, two crossovers and two sedans, powered exclusively by electrons.

While it’s true that BMW – or the rest of the industry for that matter – is lagging behind in the electric segment, the upcoming i4 sedan and iX crossover should allow the Bavarian brand to increase sales to the “electric” customer base.

As for this comment from BMW’s CEO, it can only motivate Tesla to raise its quality standards or, better yet, sell even more vehicles, whether they are premium or not.

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