The Tesla Model 3 is undoubtedly having an impact on the premium midsize sedan market in the US, but it looks like it could be down market in a big way too.
Tesla has now released the top 5 cars that Model 3 buyers are trading in and it could be quite surprising to some.
During the investor conference call today, CEO Elon Musk revealed the top five trade-in cars:
- Toyota Prius
- BMW 3-Series
- Honda Accord
- Honda Civic
- Nissan Leaf
It’s important to note that Tesla specified that it’s the top 5 “non-Tesla” trade-in cars, which would indicate that a Tesla vehicle would actually be in the top 5 otherwise.
As we reported earlier today, Tesla also claims Model 3 outsold all other premium sedans combined in the US last month.
They count the BMW 3-series, Audi A4, Mercedes C-class, Lexus IS and Jaguar XE in the segment, which was significantly down last month – potentially indicating that Model 3 is having an impact.
But now the trade-in vehicles show that a lot of people are actually making a big step up in value with their Model 3 purchase.
Currently, the Model 3 starts at $50,000, which is about twice the average price of those top 5 vehicles.
The BMW 3 Series makes the most sense and it’s actually something that we have been anticipating for a while.
In a presentation last year, Facebook millionaire turned venture capitalist Chamath Palihapitiya showed that BMW’s 3 Series will be most impacted by the Model 3 and he even suggested that the reservations were already affecting BMW’s popular vehicle before Tesla even started production.
While it might be surprising to some, a similar situation actually happened with the Model S though to a smaller degree of difference in terms of value.
Many electric vehicles buyers are mainly looking for the most efficient vehicle that satisfies their needs in terms of functionalities.
Those vehicles on the list are mostly considered highly efficient for gas-powered cars.
Now I also find very interesting is that Tesla specified that it’s the top 5 “non-Tesla” trade-in cars, which would indicate that a Tesla vehicle would actually be in the top 5.
I would assume that it is the Model S, which is not entirely surprising, and actually, it is in line with my point that many electric vehicles buyers are mainly looking for the most efficient vehicle that satisfies their needs in terms of functionalities.
At the time of their purchase, the Model S was that car, but now that the Model 3 is available, it is smaller and more efficient, which could fit their needs better.
I think it’s a very interesting situation, but it also being skewed by many of those buyers being early adopters who placed their reservations a long time ago. I think that the top 5 is going to change a lot over the next year – probably with more premium sedans added to the list.
What do you think? Let us know in the comment section below.
FTC: We use income earning auto affiliate links. More.
Subscribe to Electrek on YouTube for exclusive videos and subscribe to the podcast.