Carlos from Spain:
But in the case of the Taycan vs Tesla pricetag, the difference is not mostly brand name like a handbag, you are paying for a lot more like build quality, interior, reliability, aftersale service, real world performance, handling and dynamics, design, sportiness, etc... It's more like comparing an iPhone 11 or Samsung S20 with a Huawei or Motorola, or A Rolex and a Hamilton IMO.
It's not just the brand name that sells. Hermes uses higher quality leather, better craftsmanship, aftersales, etc.
The brand power makes them get away with charging a lot for their products, but to have brand power they had to be awesome in the first place in order to be able to leverage the 'brand power'.
Which is one reason I use handbags as the example for comparing. This actually holds true for luxury goods, if you get a Cartier Love bracelet, it comes with a lifetime warranty and free refinishing, a Walmart bracelet won't have that.
Taycan is in the luxury goods segment of EV, it was never intended to compete in the mainstream segment which Tesla occupies. That job will be for the incoming Audis to fight equivalent Model S and perhaps a VW branded EV for the Model 3 segment. The incoming Mercedes EQS, the S-Class EV, would be a comparable to the Taycan.
Been saying it before, Tesla used to have a quasi 100% of the EV market as there was no other products. It doesn't matter if you are Bill Gates or a Walmart manager, if you want a 'expensive' EV the Model S was the only choice. Now with the Taycan, Bill Gates can move up to the Porsche product, while the Walmart manager can stick with the Model S. And on the low end, it used to be people have to wait for the 35k Model S, now there are more than a handful of cheap EVs for people to choose from. This is what's great about free market with choices.
Most of Tesla's market are still intact, only the very top end, where people with money wanted to buy expensive stuff, is stolen by the Taycan. Taycan really doesn't affect Tesla's sales much. The only overlap would be a loaded Model S vs a Taycan 4S, that's where the brand power comes in,, like a for a little bit more money, one can step up to a Porsche from a Tesla.
--