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Tesla Popular Among the American Rich

Nov 5 2013, 5:05pm CST | by , in Rumors

Tesla Popular Among the American Rich
Photo Credit: Getty Images
 
 

The popularity of Tesla Model S and its unexpected success is mostly explained by the interest of wealthy, techno-savvy California rich


The popularity of Tesla Model S and its unexpected success is mostly explained by the interest of wealthy, techno-savvy California rich

Tesla Motors prepares to release it quarterly earnings next week, here's an analysis that reflects on the electric-car maker's out-of-nowhere success. It's rich people.

Tesla's Model S is a techno-wonder in the same style as the other cutting-edge products coming out of the Silicon Valley. No wonder it is a must-have car among the California rich. But, it is little more difficult to explain its resounding success in other American rich enclaves. According to Jessica Caldwell, a columnist for the Edmunds.com, Tesla is the most-registered brad new car  in eight of the 25 wealthiest American zip codes. She used car registrations data and cross-referenced them with the wealth data from the Forbes magazine.

While the rich always went for a hit new car, buying a Tesla is a bit more different: it requires quite a bit of mindset change. For example, buyers of an all-electric car have to adapt their garages to charge the car. They have to try not to forget to plug it in and, most difficult, they have to think how to charge it when they are not at home.

Tesla can go 265 miles per charge, and with the starting price of $70,000, it is seriously expensive. But, that does not seem to bother American wealthy communities. For example, in Atherton, California, the price of an average home is $6.7 million. More than 15 percent of these seriously rich people own Tesla. Similarly, in Altos Hills, about 11 percent of residents bought Tesla.


Tesla’s dramatic success in California is still to catch on in the rest of the country. It is probably just a matter of time, considering that California geeks have always been the trend setters.

Source: USA Today

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