Is Tesla Brand Like Coca-Cola, Apple? Also: Nissan Looks Beyond Leaf And Model 3 Numbers

Credit: Brooke Crothers

Tesla Model 3 is swarmed at Los Angeles Auto Show. The Model 3 debuted to Apple Store-like crowds.

As Tesla ramps up Model 3 production, Nissan is revving up its electrification push. Is the Tesla brand strong enough to fend off the next wave of electrified vehicles from rivals?

[For the week ending March 25, 2018.]

Nissan is "aiming to sell 1 million electrified vehicles – either pure electric models or those with e-Power¹ powertrains – annually by fiscal year 2022," the Japanese automaker said in a press release on Friday. Nissan's Leaf is the best-selling EV globally to date, recently hitting the 300,000 mark.

According to the Friday press release, the Nissan plan includes:

• Develop eight new pure electric vehicles, building on the success of the new Nissan LEAF
• Launch an electric car offensive in China under different brands
• Introduce an electric “kei” mini-vehicle in Japan
• Offer a global crossover electric vehicle, inspired by the Nissan IMx Concept
• Electrify new Infiniti models from fiscal year 2021
• Equip 20 models in 20 markets with autonomous driving technology
• Reach 100% connectivity for all new Nissan, Infiniti and Datsun cars sold in key markets by the end of the plan

A Wall Street Journal story said that Nissan is leaning "heavily" on hybrids to get to that lofty goal of one million per year -- not just on pure EVs like the Leaf.

Nissan will lean heavily on hybrids to meet its new goal. Vehicles equipped with the e-Power system will account for the majority of battery-powered vehicle sales by the 2023 target.

--Philippe Klein, Nissan’s chief planning officer: "Nissan Revs Up Electric Vehicle Sales Target," Wall Street Journal, March 23, 2018

Does Tesla have a Teflan brand to shield it from major competition and production challenges? 

Not surprisingly, comments below the Wall Street Journal article quickly turned to Tesla, reflecting the enthusiasm for the brand. That enthusiasm is particularly strong among current Tesla owners and the hundreds of thousands with Model 3 reservations. So, the argument in favor of Tesla's staying power in the mass market goes something like this: because Tesla has a stellar and/or a widely-recognized brand-name like Apple and Coca Cola, the Nissans and VWs and BYDs of the world will struggle to lure away current and future customers.

The Tesla allure has been addressed -- albeit elliptically -- in news stories and reviews. The headline of a Los Angeles Times article, for instance, reflects consumers predisposition to play down quality issues: "Some early owners of Tesla's Model 3 are reporting quality problems. Do buyers care?" and a more recent Green Car Reports Model 3 review said the same thing². And while more than a few Model 3 owner reviews on YouTube point out quality issues, those reviewers often give the car an upbeat overall assessment. "The Model 3 is one awesome car"...seems to the prevailing sentiment.

There is a logic behind that sentiment: Tesla leads in areas like vehicle computerization, over-the-air updates, and Autopilot. And because the company is a relative newcomer to car manufacturing, the feeling is it will eventually iron out production kinks.

Model 3 Numbers: is there a surge?

As Sunday morning March 25, 2018, the Bloomberg Model 3 Tracker was showing a total output of 10,888 vehicles and a weekly output rate of about 800 for the Model 3.

But this week Bloomberg said that there are signs of a "surge."

Our model is, by design, slow to respond to such changes in the data...That means our model’s current estimated production rate is still being held back by February’s temporary manufacturing pause. We expect the improving trend will continue next week, based on the data we’ve already received.

--"Tesla Shows Signs of a Model 3 Surge," Bloomberg, March 24, 2018

The story goes on to say that a "second data set" taken from VINs of Model 3s "spotted in the wild" and "those reported by new owners directly to Bloomberg," exceeded 12,000 for the first time.

----

¹The Nissan e-Power system is essentially a range-extender technology. The Chevy Volt (introduced in the 2011 model year) also uses a range-extender engine when the battery runs out of juice. The gasoline engine is used to charge the battery.

² "It's clear that the first Model 3 buyers—early adopters, previous Tesla owners, and friends of the company—are predisposed to discount issues of build and design quality and focus on the car's positive points" -- Green Car Reports, March 19, 2018.

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Credit: Brooke Crothers

Tesla Model 3 is swarmed at Los Angeles Auto Show. The Model 3 debuted to Apple Store-like crowds.

As Tesla ramps up Model 3 production, Nissan is revving up its electrification push. Is the Tesla brand strong enough to fend off the next wave of electrified vehicles from rivals?

[For the week ending March 25, 2018.]

Nissan is "aiming to sell 1 million electrified vehicles – either pure electric models or those with e-Power¹ powertrains – annually by fiscal year 2022," the Japanese automaker said in a press release on Friday. Nissan's Leaf is the best-selling EV globally to date, recently hitting the 300,000 mark.

According to the Friday press release, the Nissan plan includes:

• Develop eight new pure electric vehicles, building on the success of the new Nissan LEAF
• Launch an electric car offensive in China under different brands
• Introduce an electric “kei” mini-vehicle in Japan
• Offer a global crossover electric vehicle, inspired by the Nissan IMx Concept
• Electrify new Infiniti models from fiscal year 2021
• Equip 20 models in 20 markets with autonomous driving technology
• Reach 100% connectivity for all new Nissan, Infiniti and Datsun cars sold in key markets by the end of the plan

A Wall Street Journal story said that Nissan is leaning "heavily" on hybrids to get to that lofty goal of one million per year -- not just on pure EVs like the Leaf.

Nissan will lean heavily on hybrids to meet its new goal. Vehicles equipped with the e-Power system will account for the majority of battery-powered vehicle sales by the 2023 target.

--Philippe Klein, Nissan’s chief planning officer: "Nissan Revs Up Electric Vehicle Sales Target," Wall Street Journal, March 23, 2018

Does Tesla have a Teflan brand to shield it from major competition and production challenges? 

Not surprisingly, comments below the Wall Street Journal article quickly turned to Tesla, reflecting the enthusiasm for the brand. That enthusiasm is particularly strong among current Tesla owners and the hundreds of thousands with Model 3 reservations. So, the argument in favor of Tesla's staying power in the mass market goes something like this: because Tesla has a stellar and/or a widely-recognized brand-name like Apple and Coca Cola, the Nissans and VWs and BYDs of the world will struggle to lure away current and future customers.

The Tesla allure has been addressed -- albeit elliptically -- in news stories and reviews. The headline of a Los Angeles Times article, for instance, reflects consumers predisposition to play down quality issues: "Some early owners of Tesla's Model 3 are reporting quality problems. Do buyers care?" and a more recent Green Car Reports Model 3 review said the same thing². And while more than a few Model 3 owner reviews on YouTube point out quality issues, those reviewers often give the car an upbeat overall assessment. "The Model 3 is one awesome car"...seems to the prevailing sentiment.

There is a logic behind that sentiment: Tesla leads in areas like vehicle computerization, over-the-air updates, and Autopilot. And because the company is a relative newcomer to car manufacturing, the feeling is it will eventually iron out production kinks.

Model 3 Numbers: is there a surge?

As Sunday morning March 25, 2018, the Bloomberg Model 3 Tracker was showing a total output of 10,888 vehicles and a weekly output rate of about 800 for the Model 3.

But this week Bloomberg said that there are signs of a "surge."

Our model is, by design, slow to respond to such changes in the data...That means our model’s current estimated production rate is still being held back by February’s temporary manufacturing pause. We expect the improving trend will continue next week, based on the data we’ve already received.

--"Tesla Shows Signs of a Model 3 Surge," Bloomberg, March 24, 2018

The story goes on to say that a "second data set" taken from VINs of Model 3s "spotted in the wild" and "those reported by new owners directly to Bloomberg," exceeded 12,000 for the first time.

----

¹The Nissan e-Power system is essentially a range-extender technology. The Chevy Volt (introduced in the 2011 model year) also uses a range-extender engine when the battery runs out of juice. The gasoline engine is used to charge the battery.

² "It's clear that the first Model 3 buyers—early adopters, previous Tesla owners, and friends of the company—are predisposed to discount issues of build and design quality and focus on the car's positive points" -- Green Car Reports, March 19, 2018.

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Read Again https://www.forbes.com/sites/brookecrothers/2018/03/25/is-tesla-brand-like-coca-cola-apple-also-nissan-looks-beyond-leaf-and-model-3-numbers/

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