Tesla Motors Inc (TSLA) Outsells Other Luxury Automakers

Daimler expects growth in 2013 unit sales

In the first quarter of 2013, Daimler, the maker of Mercedes-Benz vehicles, experienced soft demand coming out of Europe. The company’s EPS for the first quarter was about $0.39 compared to $0.98 in the first quarter of 2012. The company noted it received positive acceptance of new models, such as the A-class and E-class. Over the period of January to May, overall sales grew 5.9% and the brand was strongest in the NAFTA region, Asia, Russia, and Western Europe. The positive trend was attributed to the company’s new compacts and SUVs.

Audi maintains growth in deliveries

Audi’s first-quarter numbers show improving trends in vehicle demand, with China leading the way in the Asia-Pacific region’s 14.9% increase in car deliveries. The company expects global economic growth to continue for the remainder of 2013, but notes uncertainty in its overall direction. Overall expected revenue growth for the company is expected to be “slight” and fiscal 2013 should produce an operating return on sales of 8% to 10%. From January through May, Audi unit sales grew 6.7%, driven by demand in Asia, the U.S., and South America. The introductions of the new A3 and SUVs models were seen as adding strength to the business.

Conclusion

Tesla Motors Inc (NASDAQ:TSLA)’s competitors in the luxury car segment are starting to see improvement in vehicle demand. Investors should watch for improvements in the job sector and increasing property values that could push demand higher in the U.S. While Tesla’s shares are pricey and carry a certain level of risk, they could have a good upside potential if the company continues to sell more cars and more consumers embrace electric car technology.

It will be interesting to see if Tesla continues to find ways to make the Model S more affordable or produces other vehicles that would be competitive with the electric car models of its more mainstream competitors. The company’s expanding network of charging stations should increase the brand’s appeal and deal with the question of whether the Model S is suitable for long distance driving. As with all new technology, consumers and investors who buy in will have to go through a period of adjustment.

Eileen Rojas has no position in any stocks mentioned. The Motley Fool recommends Tesla Motors Inc (NASDAQ:TSLA). The Motley Fool owns shares of Tesla Motors. Eileen is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article Tesla Outsells Other Luxury Automakers originally appeared on Fool.com and is written by Eileen Rojas.

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