E What Comes First - TSLA Or Tesla?

My interest in Tesla (TSLA) stock was significantly boosted when I read this thread on the Tesla forums several years ago with people selling off Ferraris, Porsches, Jaguars and other luxury cars once they test drove and owned a Tesla. Before that I only had a very small investment I made in Tesla in 2011 prior to the Model S launch. Now Tesla stands as my wife's and my largest individual stock holding.

A few weeks ago, Barrons reported research from Jefferies that Tesla owners show exceptional brand loyalty. Many will not consider any other car brand and most will buy another Tesla.

A recent poll at the Tesla Motor Club forum asked members to state if they own a Tesla and how much stock they own. The results are here. Using the data on which that chart is based, the average number of Tesla shares owned by Tesla owners is 3800, while average shares owned by non-owners is 1400.

Also, completely non-scientific observations show that Tesla ownership is not just from prior luxury car owners. Test driving a Tesla has made owners out of people who have never bought a new car, people who owned old econoboxes and all kinds of folks who would otherwise have never bought a luxury vehicle.

Some quotes:

"My roadster replaced a 1994 Jeep Grand Cherokee with 150k+ miles and broken everything which I sold to a friend for 800 dollars and it promptly blew up a few weeks later."

"My 85D replaced a 98 [Toyota] (TM) Camry that i only paid 1k for. The S cost more than 100x as much as my last car."

"prior to buying a Tesla I owned a 2002 Honda (HMC) Civic (bought used in 2006) and a 1971 Datsun 240Z (bought used in 1977). I now own a 2013 Model S and a 2015 Model S, both bought new."

I'm going to be one of the first in line for a Model 3. At this point, it is pretty much a certainty that there will be a mad dash for pre-orders for the Model 3 as soon as it opens and based on the Model S owners, who came from everything from beaters to Ferrari's, the Model 3 should appeal to nearly everyone.

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Wendell Brown 3 years ago Member's comment

Hi, what do you mean by it's your wife? It's your ride (you own it)? Sure hope you're not implying you own your wife or my wife will make me stop reading this site! I don't understand the lingo, and searching isn't helping me....

Harry Goldstein 3 years ago Member's comment

I'd trade my wife for a new Model 3!

Siddharth Dalal 3 years ago Author's comment

Nope I don't own a Tesla. But it is the largest individual stock holding taking all my wife and my holdings combined

Patrick Bender 3 years ago Member's comment

Great article! Everyone who owns one seems to love it and I'm sure they will continue to buy from Tesla in the future. Really expecting them to take over the market in the future once they begin mass production and driving costs down.

Doug Morris 3 years ago Member's comment

I've never driven a Tesla... now I'm tempted to.

Currency Trader 3 years ago Member's comment

I've heard there is a waiting list to get a Tesla and they don't come cheap.

Siddharth Dalal 3 years ago Author's comment

Not much of a waiting list in the US. Elsewhere, yes. Good things in life are either free or expensive. There is no such thing as cheap and good :)

Thorsten Ringel 3 years ago Member's comment

The best things in life are even free. If you just look for the most exspensive things, you will think its the only alternative.

Siddharth Dalal 3 years ago Author's comment

You really should. I sat it in it and it felt like a car designed for me. I sat in a loaded Mercedes E Class and it was a car designed for old people. The great acceleration, silent smooth operation, the fantastic display where the bluetooth and maps work intuitively.

Dan Jackson 3 years ago Member's comment

Is there really such a difference? I read the forum you linked to and while I've never owned a $250k car, I can't see how they could be so inferior to a Tesla.

Siddharth Dalal 3 years ago Author's comment

Dan, you need to drive one. There really is a difference. Some people complain that the Tesla is not luxurious enough. But that really doesn't matter to me personally.

Matthew McCord 3 years ago Member's comment

One of the nice, but understated, things about the Model S is its practicality. It takes off of the line like a Ferrari, packs like a Tahoe, has the seating capacity of a Odyssey, and the efficiency of a Prius. I no longer need separate cars for hauling the kids around and commuting.

Ayelet Wolf 3 years ago Member's comment

Great article and thanks for the link to the forum. My favorite line was "I have finally found something bad to say about it: owning the Model S has made me dislike my Ferrari and every other car I once loved."

Siddharth Dalal 3 years ago Author's comment

Thanks!

Kurt Benson 3 years ago Member's comment

You've highlighted a fascinating correlation I hadn't put much thought into until now. This most certainly gives $TSLA an edge over other automobile manufacturers. I'm curious what other companies benefit from similar correlations. I would say Apple most definitely.

Duke Peters 3 years ago Member's comment

How about Harley Davidson ($HOG)?

Tiffany Jackson 3 years ago Member's comment

There must be other companies that benefit from this besides Apple and Tesla. Amazon and Netflix come to mind. Though loyalty can be fickle. I'm sure you remember how Netflix users rebelled when the company wanted to increase prices and spin off its dvd business.

Siddharth Dalal 3 years ago Author's comment

I'm not a big fan of the way Netflix runs the user facing side of the business but I live with it as my only option for DVD rental. But yes it does qualify as a disruptor that customers seem to love.

Siddharth Dalal 3 years ago Author's comment

Kurt, in the recent past only Apple, I guess.