BY GERRY MILES
It may well be the new “must have” car for those who must have and can have it all in 8 of America’s 25 toniest zip codes, according to Edmunds.com, out-selling its competitors.
Edmunds’ analysis is based upon new car registration data from Polk, showing the 8 area codes that sell the most are in California. Not surprisingly, the town next to Tesla’s Palo Alta HQ, Atherton, shows 15.4 percent of all new cars are the Model S. Palo Alto headquarters, is the wealthiest zip code in America, with a median home price of $6,665,000.
While having the must have and early adopter exclusive car is nice, Jessica Caldwell says the data provides a bit of why it appeals to buyers.
“It’s a classic pattern for any retail product, including cars: the wealthy and influential buyers set a trend, and the mainstream aspires to follow,” says Edmunds.com Sr. Analyst Jessica Caldwell. “As Tesla increases the number of models and improves its price points, it could find itself in demand by more than just those in these wealthy enclaves. After all, luxury car companies typically find the most volume in their entry-level vehicles.”
In May, Tesla CEO Elon Musk shared that he hopes to offer a vehicle to car shoppers for under $40,000 within the next four years.
California’s sunny skies may also make it appealing, but nationally the Model S market share sits at just 0.1 percent. Edmunds.com’s analysis found that Tesla’s market share exceeds 1.0 percent in only one of the non-California zip codes ranked in the top 25 by Forbes (#19 Water Mill, NY with 1.2% of all new car registrations in 2013, through August). The Model S national market share sits at just 0.1 percent.
Jessica Caldwell (@jessrcaldwell) offers more insight into Tesla’s class of affluent buyers in Edmunds.com’s Industry Center at http://www.edmunds.com/industry-center/analysis/drive-by-numbers-tesla-model-s-is-the-vehicle-of-choice-in-many-of-americas-wealthiest-zip-codes.html.