The Crisis Will Make Tesla King

First, Tesla’s retail model is vastly different than Ford or GM, customers who want to buy a new Chevy are expecting to go to an auto dealer to see what is on the lot, maybe they search online through something like Kelly Blue Book’s website to see what is available nearby.

Tesla is different, it has designed its entire sales operation online. You choose what you want in your model, the prices are set, there is no outrageous commission charge, there is no coercion to buy extra protection or undercoating or whatever the dealership wants to offer to gouge an extra buck out of the customer.

Tesla does not have to adapt to the new ‘social distancing’ world that exists today.

Second, Tesla has a passionate consumer base that understands the value of the product.

Tesla customers know that they are getting the safest vehicle ever manufactured, with the least amount of maintenance required.

Tesla’s do not require oil changes, there are no fuel injectors clogged or mufflers falling off.

There is no need to stop at a gas station to refuel (and only those traveling interstate are likely going to have to drive to a recharge station) with Tesla models varying from 275 to 400 miles in range (selectable when purchasing the vehicle) chances are good that one can complete one’s daily drive without worrying about recharge.

Tesla has the safest vehicle that requires the least amount of maintenance and never requires you to stop and fill up on gas.

Third, the competition is shutting down, a new influx of EVs was supposed to be entering into the marketplace in 2020 and 2021. Everything from Mustang to Humvee EVs were just on the horizon.

As automakers like Ford and GM cut back on their production investments and shut down their operations, Tesla continues to dominate the EV marketplace without any real competition Stateside.

Automaker’s research and design efforts into EVs will decline, while Tesla will continue to pioneer and innovate in the field.

Fourth, in terms of demographics, Tesla’s customers tend to skew a bit wealthier, and this is going to help Tesla.

It is a well known fact that even during hard economic times, those that are well off continue to buy new houses and new vehicles as if nothing unusual is going on.

And those that do their research will know the resale value of Tesla’s hold up far better than other vehicles. Making the purchase of a Tesla almost an investment one can sink their money into that will hold value better than most things during uncertain economic times.

Summary

This all comes at a time when automakers were investing billions into catching up to Tesla, to delay now is almost to cede the market to Tesla forever. Tesla already had an almost insurmountable advantage and was a full lap ahead of the competition, this crisis will only increase that advantage, Tesla will continue to race ahead, while the competition stands still.