Of the 25 wealthiest zip codes in the US, eight of them have the distinction of having the Tesla Model S as its best-selling car. In some enclaves, the Tesla is about as common as a Toyota Camry in other cities. For instance, in the San Francisco Bay Area community of Atherton, 15 percent of new vehicles are Teslas. Of course, the average home price in Atherton is about $6.7 million and the Silicon Valley community is pretty much the birthplace of the high-end EV.
Meanwhile, about 3,000 miles east, Water Mill is the only city outside of the Golden State where Teslas account for more than one percent of new-car sales. Overall, Tesla accounts for about one out of every 1,000 new cars sold in the US. That's not exactly commonplace, but it is pretty impressive considering that the far-cheaper Nissan Leaf EV and Chevrolet Volt extended-range plug-in are selling at about the same clip. We'll know a little bit more about Tesla's 2013 sales when the company's third-quarter earnings are released Tuesday. In the meantime, check out Edmunds's press release below.
SANTA MONICA, Calif., Oct. 31, 2013 /PRNewswire/ -- It's no secret that the Tesla Model S is the newest "must-have" toy among America's most affluent citizens. But a shocking analysis from Edmunds.com, the premier resource for car shopping and automotive information, finds that in some of the country's richest communities, the Model S sells better than any other car on the market.
According to Edmunds.com's analysis of new car registration data from Polk, the Model S is the top-selling vehicle this year in eight of America's 25 wealthiest ZIP Codes. The analysis further finds that all eight communities are located in California. Leading the way is Atherton, CA, where the Model S accounts for 15.4 percent of all new car registrations within its borders. According to Forbes, Atherton, which sits adjacent to Tesla's Palo Alto headquarters, is the wealthiest zip code in America, with a median home price of $6,665,000.
While the analysis shows that the richest populations are snatching up Teslas now, Edmunds.com says that the data offers hints about Tesla's potential to appeal to a broader range of 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."
Tesla has made it clear that its next frontier is to make its vehicles more affordable to the mass market. 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.
If Tesla does plan to break through to new buyers, it will have to expand its appeal outside of California's borders. 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.
About Edmunds.com , Inc.
Edmunds.com is a car-shopping Web site committed to helping people find the car that meets their every need. Almost 18 million visitors use our research, shopping and buying tools every month to make an easy and informed decision on their next new or used car. Whether you're at the dealership or on the go, we're always by your side with our acclaimed Edmunds.com iPhone and iPad apps and our Edmunds.com Android App. Our comprehensive car reviews, shopping tips, photos, videos and feature stories offer a friendly and authentic approach to the automotive world. We're based in Santa Monica, Calif., but you can connect with us from anywhere by following @Edmunds on Twitter or by becoming a fan of Edmunds.com on Facebook.