In America, Tesla succeeded in giving a tough time to European luxury car manufacturers as the sales of its Model S in the region accounted for more than that of thee European premium vehicles.
Tesla Model S was launched three years ago but it has already forged its image for quality amongst luxury vehicle buyers. Overall, the sales of premium vehicles, such as Audi A8, Mercedes S Class, Porsche Panemera and BMW 7 series, were cut down last year, whereas sales of Model S increased by 51% from 2014.
Past year, the American electric vehicle maker delivered 24,202 Model S vehicles. Mercedes delivered 21,934 luxury S class vehicles. It succeeded in soundly trouncing premium models of Lexus and Jaguar by turning itself into a brand that appeals to luxury car buyers in such a small amount of time. Officials working at those automotive organizations noticed and scrambled for introducing their own premium electrically powered cars.
Porsche especially has pledged $1.5 billion to develop its own electric 4-door sports vehicle. Whereas others wait for private stakeholders or governments to develop the electric vehicle charger network to make electric vehicles appealing to mainstream buyers, Tesla established a SuperCharger network of its own.
Fortune reported that the automaker is planning to include 300 more charging facilities in the United States in 2016, bringing the cumulative to around 900. It is also promoting the so-called destination chargers installation at upscale hotels and shopping malls. Those would reach almost 2000 later this year. Compared to this, Porsche suggested its new Mission-E may feature power charging up to 800 kilowatts, but does not intend to establish a network of those charging facilities for its customers.
The network of Superchargers is a huge marketing advantage for the Tesla. It has also led the way in self-driving systems, outpacing all rivals, including Google and Apple. CEO Elon Musk addressed shareholders at the final quarter press conference by stating that cumulative sales for the current year would increase by more than half at 80,000 to 90,000, including both Model X and Model S vehicles.
Las Vegas Sun reported that a battery manufacturing company in Nevada, named K2 Energy Solutions, has entered the industry to compete with Tesla. It has hired 80 employees for its operation in the US and established production factories in China and Henderson.
The scope and size of the battery-producing startup is not like that of Tesla, but the organizations share more common factors than manufacturing batteries in the same region. In the same law that offered $1.3 billion in the form of incentives for developing Gigafactory in Northern Nevada, K2 has been provided incentives to establish its manufacturing plant in Henderson.
At the center of the growth of K2 is a lithium battery that has a design and chemical formula to make it long lasting. The competition is heating up for Tesla with this new entrant in the market.