While Tesla is working hard to deliver model 3 by the d-day, bad news came for the electric car manufacturer that people are not buying sedan cars. Rather they are purchasing CUVs and SUVs which is a looming problem for Tesla.
Autodata research shows, in August the passenger-car industry witnessed 12% fall in sedan-sale while sales of CUVs and SUVs rose 2%. Till now Tesla has fought to earn a market share in the sedan car segment but how it plans to do it when the market itself is shrinking is not certain. Actually, the passenger-car sale is encountering low sales for a while.
Tesla’s affordable SUVs
Realizing the trend of the market’s big automakers already took steps and started investing heavily in manufacturing crossovers and SUVs. However, Tesla also took note that demand for sedans is ebbed and it introduced Model X, SUV but the price is too high to afford. Elon Musk figured out the point that Model X cannot be afforded by most of the people. Consequently, he shared his plan in July; the company will bring affordable SUVs labeled as Model Y and pickup trucks.
The competition is heating up
All in all, though Tesla is planning to manufacture products in accordance with the new demand, it is still performing ineffectively in the game. General Motors is to roll out its complete electric SUV at US$ 37,500 by the end of this year. Audi, Hyundai, and Volvo will soon kick off selling their all-electric SUVs and CUVs in the market. Indeed, the change in the market demand puts Tesla in a tougher race.