Is Tesla a premium car brand?

The company has cutting-edge technology and good positioning, but is it enough?

As we all know, Tesla is now a major player in the global automobile industry. With more than 1.3 million vehicles delivered last year, it was the 16th best-selling car brand in the world, ahead of Fiat and behind China’s Changan. Volume was up 40 percent from 2021, meaning it was the second-best performer in the global top 25, only surpassed by BYD, up 152 percent.

As the vehicles spread around the world, Tesla is starting to find more and more rivals. The company is a relatively new brand compared to the traditional ones that have been making cars for a century. However, with Tesla gradually gaining ground, it is inevitable to compare the cars of the American manufacturer with those of other brands. Some of them belong to the mainstream market, while others belong to the premium market. But are Teslas true premium cars? Let’s see together what is included in this definition and what characteristics, on the contrary, differentiate it.

Premium, yes

The main reason for placing Tesla in the premium segment is the positioning of its cars, which includes not only the price but also the way the company communicates its production to the public and the features it focuses on. As an early adopter, Elon Musk’s company has the advantage of being recognized as an innovative and forward-thinking automaker compared to others when it comes to electric vehicle technology and efficiency.

This positioning and the image it enjoys among the public allow Tesla to price its cars at the same level as other premium car brands such as Mercedes or BMW. The Model 3’s main competitor in the internal combustion car market is not a Toyota Camry, but a Mercedes C-Class, although Tesla is quite limited in terms of interior gadgets and details.

As an innovative and alternative choice for many consumers, Tesla can confidently play both sides of the industry, premium and mainstream. The fact that these cars present something truly new and better than most other electric vehicles is a good reason to include Tesla’s line among premium vehicles.

Premium, no

On the other hand, there is a subjective definition of premium. A premium car is usually associated with the German trio of Audi, BMW and Mercedes-Benz, although there are certainly other brands that fit into this category. This trio generally sells cars at higher prices because they have better finishes, more advanced features and simply because they are synonymous with exclusivity. Its success inspired many other automakers to enter this lucrative market with younger premium branches, not least Lexus, Acura, Infiniti and Genesis.

You can say that the cabin of a Tesla is not elegant. It may have a lot of interesting driving solutions and software, but the interior is usually not as stylish as that of a regular premium car. The dashboard is not only simple (simple can also be premium), but sometimes poor in terms of quality. Some would say even the seats are a step back from premium brands.

Of course, this is a subjective matter. The quality of a car is determined by many different factors that vary from driver to driver. The important part of the story is the happiness and satisfaction of driving a car.

The author of the article, Felipe Muñoz, is a specialist in the automotive industry at JATO Dynamics.