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
Is Your Money Earning the Best Possible Rate? (Sponsor)
Let’s face it: If your money is just sitting in a checking account, you’re losing value every single day. With most checking accounts offering little to no interest, the cash you worked so hard to save is gradually being eroded by inflation.
However, by moving that money into a high-yield savings account, you can put your cash to work, growing steadily with little to no effort on your part. In just a few clicks, you can set up a high-yield savings account and start earning interest immediately.
There are plenty of reputable banks and online platforms that offer competitive rates, and many of them come with zero fees and no minimum balance requirements. Click here to see if you’re earning the best possible rate on your money!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
