April 6, 2024 | Weekend Drive: Tesla isn’t luxury or mass-market, says J.D. Power’s Tyson Jominy
Apr 6, 2024
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Tyson Jominy from J.D. Power discusses Tesla's classification debate as luxury or mass-market. They delve into Tesla's design, technology, pricing strategy, and implications for market positioning. Also, explore Kia and Hyundai's successful EV sales strategy and Hyundai Group's success with diverse electric vehicles.
Tesla's classification as a hybrid 'X brand' combines mass-market and luxury elements, challenging traditional categorizations.
Consolidation trends in dealership groups reflect a rapid acquisition pace, expanding market presence and new vehicle sales growth.
Deep dives
Challenges with Used Vehicle Appraisals
The podcast episode highlights three major challenges with used vehicle appraisals: manually sifting through comp vehicles, dealing with old book values and ghost comps, and lacking recon visibility. These obstacles can be tackled effectively using auto vision, a solution offered by Reynolds and Reynolds, as discussed in the episode.
Consolidation Trends in Dealership Groups
The episode delves into the ongoing consolidation trends among dealership groups, particularly focusing on the top 150 dealership groups in the US. The data reveals a brisk pace of acquisitions and growth in new vehicle sales volumes, consolidating more of the overall dealership count. Top dealership groups are expanding their ownership and market presence, indicating a continuous trend of consolidation within the industry.
Tesla's Classification and Market Dynamics
Tesla's classification as a luxury or mass-market brand sparks a debate in the episode, with varying perspectives discussed. While Automotive News shifted Tesla out of the luxury category due to pricing changes and a focus on volume, JD Power's Tyson Jomini argues for a nuanced view, labeling Tesla as an 'X brand' combining mass-market and luxury features. The discussion highlights Tesla's pricing shifts, technology innovations, and consumer behavior, indicating a complex positioning in the automotive market.