The new BMW i8 has been positioned as a Tesla killer. While the claim is bolstered by the power of the BMW brand, its dealer network and massive marketing budget, the model may fail. The car is not a Tesla, and it sells for more than $135,000.
BMW’s first hurdle is the image Tesla Motors Inc. (NASDAQ: TSLA) has built. It has one of the best-reviewed cars in history. It has a flawless safety record, despite rumors a year ago that its battery could catch on fire in a collision. Elon Musk, its founder, has become a high-tech legend. His “brand” has helped give Tesla a “glow.”
High-price luxury cars have not caught on. The best case in point is General Motors Co.’s (NYSE: GM) Cadillac ELR. It is GM’s high-end attempt to go green. However, most car experts see it as nothing more than a Chevy Volt with expensive trim. The ELR’s base price is $71,000 (not much different from a Tesla). And it is not a true electric car. As part of its power train, it has a gas-powered engine.
The BMW i8 may end up competing with the new Tesla Model S run by two motors. Its acceleration will take it from 0 to 60 in 3.2 seconds. It will run with Tesla’s new autopilot technology, and it will retail for over $120,000.
BMW’s i8 has an immediate drawback. It is not all-electric as the Tesla is. That means it cannot claim its technology is a leap forward. The company describes the car this way:
The BMW i8 is no ordinary sports car. It’s an icon of progress — an extraordinary evolution of The Ultimate Driving Machine. As a all-wheel drive plug — in hybrid sports car, this revolutionary vehicle combines the power of a 3-cylinder TwinPower Turbo engine and the efficiency of an all-electric motor for an exhilarating 357-hp and 420 lb-ft of torque driving experience that’s every bit BMW.
Under the hood, the BMW i8 is not a Tesla. Its technology is too old.
ALSO READ: GM Closes Out 2014 With Total 84 Recalls for 30 Million Vehicles
Take Charge of Your Retirement In Just A Few Minutes (Sponsor)
Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance—and SmartAsset’s simple quiz makes it easier than ever for you to connect with a vetted financial advisor.
Here’s how it works:
- Answer a Few Simple Questions. Tell us a bit about your goals and preferences—it only takes a few minutes!
- Get Matched with Vetted Advisors Our smart tool matches you with up to three pre-screened, vetted advisors who serve your area and are held to a fiduciary standard to act in your best interests. Click here to begin
- Choose Your Fit Review their profiles, schedule an introductory call (or meet in person), and select the advisor who feel is right for you.
Why wait? Start building the retirement you’ve always dreamed of. Click here to get started today!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.