nberry:
This article sums it up quite nicely. Nick there is something in it for you and me.
https://www.businessinsider.com/tesla-model-s-vs-porsche-taycan-who-wins-no-contest-2019-9
I swear to God I didn't write that article
As you all know, I knew the pricing and spec of the Taycan for a while, and I did have a chat with Porsche about them. I can't disclose stuff before as the car wasn't launched yet. The Teslas they got was for studying, it wasn't really a 'benchmark' for them to aim at per se. Of course they want to know how the EV market segment leading car works, especially since EV cars is a new thing for the group.
They had great experiences doing hybrids, and they simply combined that knowledge with those gained from studying a Tesla. Especially on matching front axle drive with rear axle drive when the 2 are not physically connected. The result is the Taycan. All the weaknesses in a Tesla were not present in the Taycan as we all can see.
They know their brand, and how much it is worth, hence the pricing strategy to stand above the Tesla offerings. I totally understand their standpoints and I had agreed with them 100%.
Before it was Tesla or nothing, there is no choices in the EV segment. Tesla can get away with a $100k Model S with a sub par interior. The price tag is 'expensive', very different than naming it luxury as it isn't. There is no point for Porsche to price a luxuriously made Taycan at the same price point, there is no money to be made and it cheapens the brand. Just like Bentley will never sell a car at the $100k price point. What Porsche has done is stretched the EV segment upmarket. They expanded the pie upwards. The Taycan doesn't compete directly with Model S, it only steal those customers that can afford a higher price car and wanted their money paid to be worthwhile. The rest of the client base who don't mind a cheap interior will still buy Teslas. But a choice has been given to the segment, either they paid $100k for a cheap car, or pay more for a luxurious one.
Later on, when the really luxurious brands like Rolls Royce and Bentley enter the EV segment, they will expand the market even more upwards, going on top of Porsche, like how they did with the SUV segment. The Cayenne was the SUV that expanded the SUV market upwards, the top models was the most expensive SUV in the segment fo a while, until Bentley, Rolls Royce and Lamborghini came in. I didn't forget about Land Rover with their Range Rover line, they were expensive and luxuriously trimmed, but they don't have the build quality to match the price tag and remained a niche product, that top end SUV market didn't expand to the size today until the Cayenne came along.
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