Tesla Model 3 Will Bring BMW 3 Series Sales ‘to Zero,’ Investor Says
Venture capitalist expects the Tesla Model 3 to dominate the entire mid-sized car segment.
Tesla is, without much opposition, the auto industry's biggest disruptor. Elon Musk and his crew consistently find ways to poke at the rest of the car biz, and with the Model 3's reign imminent, some believe that it's now in for the long-haul. While the hype behind the heavy-volume EV has already made a difference in the way other automakers think, Social Capital founder Chamath Palihapitiya feels that Tesla and the Model 3 will soon dominate the market.
And not just the EV category, the midsize car segment as a whole. According to the exec, consumers are completely missing the significance of silicon-valley darling.
He went onto add that the BMW 3-Series, a direct competitor to the Model 3, will soon become defunct. Palihapitiya mentioned that the customer-centric ideology behind the Tesla and the system behind it will become the major victor, claiming "that entire business is going to go to zero."
"There is not a single person of right, sound mind and body, if you could build a Tesla Model 3 online and get it delivered in 30, 60, 90 days, or you have the choice of buying the BMW 3-Series will choose the BMW," said the businessman.
Morgan Stanley's Adam Jones negated Palihapitiya's comments, bringing international sales into context. Still, the Social Capital boss stood strong and reiterated that Model 3 pre-orders are already consuming that of the Bimmer's, not to mention Tesla's own Model S.