Leading the way: Tesla trounces luxury competitors in year-end sales tally

2017 Tesla Model 3
Now that Tesla has released its final sales numbers for the end of last year, we finally have a yardstick to measure the company’s sales success.

In the third quarter, Tesla made a point of noting that, with the Model 3 approaching full production, it became the fifth bestselling—non-SUV—car model in America.

On New Year’s Day, the company reported it delivered 63,150 Model 3s from October to December. That’s up 13 percent from 55,840 from July through September.

READ THIS: Tesla cuts prices $2,000, almost hit 250,000 vehicles in 2018

Taking Tesla's sales numbers at face value for the moment, the company says it sold more Model 3s in the third quarter than some entire brands, including some of its chief competitors, including Acura, Audi, Cadillac, and Infiniti.

Other rivals were also feeling the heat from Model 3 sales. In total Lexus sold 71,107 vehicles and BMW sold 85,949, according to sales numbers from Automotive News (subscription required.)

2018 Tesla Model S and 2018 Tesla Model X

Model 3 sales for Q4 weren’t that far behind entire affordable brands such as Mazda (65,203) and Volkswagen (87,836).

And that’s just one model from Tesla, versus other brands’ entire lineups.

It’s not a direct comparison, because Tesla’s numbers include Canadian sales, while those from other brands are only in the U.S. Still, in the third quarter, Tesla sold about 1,500 Model 3s in Canada, as it focused sales there to delay the expiration of its federal tax credit in the U.S. So the numbers aren’t far off.

Whole lineups

Counting the Model S and Model X (which are exported in greater proportion), the company sold 75,100 cars in the U.S. in Q4, according to Automotive News numbers, more than Lexus (71,107), Audi (55,903), Buick (51,627), Acura (44,451), Infiniti (44,031), Cadillac (41,462), Lincoln (28,307), or Volvo (24,224).

Only BMW and Mercedes sold more, at 95,710 and 101,047, respectively. Using Tesla’s own number of 90,700 sales for the quarter wouldn’t change that order, even though Tesla’s number includes sales of all three of its cars in Canada, and the Model S and Model X around the world.

Head-to-head

When it comes to direct competitors to the Model 3—upscale sedans costing $45,000 to $80,000—the Model 3 trounces all competitors, with the next closest models, the Mercedes-Benz C-Class and the Lexus ES coming in with about 18,000 and 14,000 sales respectively for the quarter. BMW sold 9,847 3-Series sedans, though it has sliced much of that market into niche products such as the 4-series.

DON'T MISS: Tesla Model 3 is fifth bestselling car in U.S., production still short of profitability goal

For the quarter, the Model 3 outsold such mainstays of American roads as the Jeep Grand Cherokee and Wrangler, the Subaru Forester and Outback, and the Honda Pilot. It almost conquered the Toyota Highlander, which had 63,812 sales, and wasn't far behind the Toyota Corolla (68,564) and the Honda Civic (70,724) for the quarter. With its slow production ramp-up early in the year, however, it couldn't approach those top-selling cars for the full year.

Annual sales

Tesla’s slow ramp-up to full Model 3 production was one of the major stories of the year, and the car didn’t start posting big sales numbers until Q3, so many of its sales look less impressive on an annual basis.

For the full year, Mercedes-Benz, BMW, Lexus, and Audi—even Mazda and VW—sold more cars than Tesla. Many of those brands, though, sell full lineups of cars and SUVs in multiple sizes and formats (front-wheel drive/rear-wheel drive; sporty, luxurious, car- or truck-based, for example.) Tesla sells three models: two luxury cars and a crossover SUV.

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Toyota pushes hybrids despite slowing gas-electric auto sales

Toyota

Don't tell Toyota the once hot gas-electric hybrid vehicle is losing its appeal.

The automaker is planning to leverage its dominance in hybrid autos as it grows the number of full- and hybrid-electric vehicles sold in the U.S. and around the world.

“We are working on an entire portfolio of hybrids which we have been selling since 1997, plug-in hybrids, full battery electric vehicles as well as our fuel cell vehicles,” said Bob Carter, executive vice president of sales for Toyota North America. “Those vehicles represent about 9 percent of our sales in 2018. We have set a goal that it will be 15% of our sales next year in 2020.”

Toyota's emphasis on hybrids comes at a time when U.S. demand for the traditional gas-electric vehicle is dropping. LMC Automotive estimates full hybrid sales in the U.S. fell 6 percent last year, while Toyota's hybrid sales dropped 5 percent.

The lower price of gasoline gives potential buyers less incentive to opt for a hybrid over a model powered by an internal combustion engine. Another factor: The growing number of electric models for sale gives eco-friendly buyers the option to plug in and stop pumping gas. In that area, Tesla, not Toyota has become the clear leader.

“Whether it is just sales numbers, whether it is image and awareness and appeal, I think Tesla owns that [the EV market] now,” said Karl Brauer, analyst with Kelley Blue Book. “I think there are plenty of people who wonder if Toyota could or should be further along in the pure electric field.”

Last year, Toyota sold just under 28,000 plug-in electric vehicles in the United States. All of them were the Prius Prime, a plug-in hybrid-electric model. By comparison, the auto website Inside EVs estimates Tesla sold just over 191,000 electric vehicles in the United States. (The company doesn't report specific sales for the country.)

Tesla's lead in electric cars is not insurmountable, but Brauer said it will be “highly difficult” for Toyota to change the perception Tesla is the industry leader in EVs.

Adding to the challenge is the coming wave of electric cars that will give buyers more options. Later this year, Audi will start selling its first full electric model, the e-tron. “Americans are going to want vehicles that are electrified,” Mark Del Rosso, CEO of Audi of America, told reporters last week.

Despite the growing competition and growing questions about their game plan, Toyota executives are undaunted. They are developing full electric vehicles and Carter promises more announcements about future models. But for now, Toyota is leveraging the expertise it developed with the Prius. “That hybrid technology in the short term is the best application for consumers today,” said Carter.

— CNBC Producer Meghan Reeder contributed to this report

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Why you should buy a Volvo or an Audi instead of the 2019 Infiniti QX60

Why you should buy a Volvo or an Audi instead of the 2019 Infiniti QX60

Mack Hogan | CNBC

Mack Hogan | @macklinhogan

8:48 AM ET Wed, 2 Jan 2019

Infiniti is often forgotten in the luxury market. Created by Nissan as the Japanese company's premium brand, it plays in the near-luxury space alongside Acura and Buick. One of its most important products is the QX60.
For the many who aren't familiar with Infiniti parlance, the QX60 is the company's three-row crossover that slots between the gargantuan QX80 and the all-new QX50. It's a family crossover aimed squarely at segment stalwarts like the Acura MDX.
There's one problem, though: It doesn't feel like a proper luxury product.

The Good

As first impressions go, the QX60 isn't bad. Despite being the sort of massive crossover that American families crave, it still manages to look svelte. Some credit must go to the combination of gun-metal gray accents and lovely deep Bordeaux paint fitted to $65,930 Luxe model I tried.
I was impressed by creamy leather that's quilted to look more upscale. The breeziness of the cabin is magnified by a light wood trim and moon roofs stretching to the third row, helping the QX60 to feel bigger than it actually is. An accomplishment for sure, as the QX60 is no small beast.

Mack Hogan | CNBC

The third row is suitable for seating adults, while still offering a reasonable 16 cubic feet of cargo space behind the back row. It's also easy to move about the cabin, with seats that fold without any hassle and create large passageways for the kids to pile through.

Mack Hogan | CNBC

Finally, it's hard to complain about the on-board equipment. My tester had rear-seat entertainment, a Bose stereo, heated and cooled front seats, heated second-row seats, automatic emergency braking, adaptive cruise control, automatic high beams, a surround-view camera and the aforementioned surplus of moon roofs. In a three-row luxury crossover, that's not a negligible list of kit for $65,930.

Mack Hogan | CNBC

The Bad

But you can put all the kit you like on a luxury crossover and still get nowhere; it has to feel like a premium product. And the QX60 simply doesn't.
Part of the blame has to be assigned to the working-class roots of the QX60. Underneath, it shares most of its architecture with the Nissan Pathfinder. Plus, we haven't seen an all-new model in over five years.
Neither of those factors is disqualifying in and of themselves. Lexus cars often share bits with Toyota but still manage to feel luxurious, for instance. But the QX60 certainly doesn't. See, offerings from the newest generation of three-row family haulers manage to shrink around you. Buyers don't want to feel like they're commanding a battleship when they're parking outside of Target.

Mack Hogan | CNBC

Yet the QX60 hearkens back to that era. Pulling it into my garage felt like steering a Nimitz-class aircraft carrier through the Panama Canal. On the freeway, it's ponderous and floaty with no discernible connection between the steering wheel and the front wheels of the vehicle. Yes, it's quiet and comfortable, but so are the three-row haulers from Toyota, Mazda, Chevy and even Nissan.
If you're thinking that the tech justifies the price, I'm afraid that isn't the case. While active safety features are on board, they aren't as advanced as the ones on Nissan's Rogue, an SUV that is a full class below the QX60 and doesn't even make an attempt at being a luxury SUV.

Mack Hogan | CNBC

You're also getting a navigation system that was designed during the Bronze Age and that's flanked with acres of gray plastic that has no place in a $65,000 SUV.
As for the powertrain, it's an utterly forgettable combination of Nissan's 3.5-liter V-6 with the company's standard Continuously Variable Transmission (CVT). If there's any life in this engine, the CVT sucks it out.

Mack Hogan | CNBC

Final Thoughts

If you've never driven an honest-to-goodness luxury car, the QX60 probably feels nice. You could probably buy one and be entirely satisfied. But some day, your friend is going to offer you a ride in their new Volvo XC90 or Audi Q7. And when you find out that you could have had one for the same price as your Infiniti, you'll never enjoy it again.
In sum, the QX60 doesn't feel any more special than your run-of-the-mill Highlander, CX-9, Pilot or Durango. In some ways — like in the infotainment department — it's far behind even those choices.
Infiniti, though, charges a luxury price for a definitively mainstream crossover. I suggest you look elsewhere.
Rating:
Exterior: 4
Interior: 2
Driving Experience: 1
Value: 1
Overall: 2
Price as tested: $65,930

Mack Hogan | CNBC

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