Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Tesla Motors, Inc. Has Owners Wrapped Around Its Finger

As if Tesla's (NASDAQ: TSLA  ) Model S hasn't scooped up enough accolades already, the top selling luxury car can now count one more to its name: the top spot of Strategic Vision's Total Quality Index. What does this mean? In short, the Model S is striking a new key with owners -- and it's a sweet one that other manufacturers may have trouble imitating.

Model S. Image source: Tesla Motors.

The study
Strategic Vision says that its 19th annual Total Quality Index study is a pivotal one.

TQI absolutely offers a glimpse into the future, as it did seven years ago when we headlined our TQI results, '... Perceived Quality the New Paradigm ...' where we predicted Hyundai's successes through 2013," says Alexander Edwards, President of Strategic Vision.

In 2007, Strategic Vision explained, critics questioned the research company's prediction of Hyundai's success through 2013. But today, "[N]o one can deny the success Hyundai enjoyed."

Now Strategic Vision is back with a new bet on electric-car maker Tesla Motors. The company says the fact that the Tesla Model S is ranked the Best Model in Total Quality could be "predictive" of the future. According to Christopher Chaney, Strategic Vision's senior vice president:

All I can say to manufacturers is prepare to listen carefully to what car buyers are saying through these scores, be nimble and include "True Innovation" that is bold and smart. ... Tesla built a vehicle that generated love in attributes that were most important to segment buyers. Tesla isn't an electric vehicle that just has good features, but instead it's a luxurious sports sedan that has "True Innovation," as well as a rocket-like speed and drive feeling, that just happens to be an electric vehicle. I would call on all manufacturers looking toward electrification to implement a mantra of building super cool transportation that impresses the heck out of customers, and "happens to be electric." Very few people are looking for an overpriced electric breadbox/toaster with nothing cool. Consumers are powerful, have the Internet and know how to use calculators.

Not only did the Model S take first place as the best model, it also received a higher score in that category (963) than any other category surveyed. The second-highest score came from the premium convertible/roadster category, with the Mercedes SL-Class topping the list at 957.

Author touring the Model S. 

Strategic Vision speaks boldly about its TQI, saying that it is a holistic measure of the key facets that drive "excitement and other measures that collectively are energized by the emotional response associated with the aggregate of all those experiences – hence Total Quality." The results represent "something meaningful and predictive," said Strategic Vision founder and executive chairman Darrel Edwards, Ph.D.

Owner infatuation
It's important to note that, like the Consumer Reports' owner survey in which Tesla Model S drivers gave their vehicles a 99 out of 100, Strategic Vision's study is a measure of the excitement among owners -- not consumers. So, this isn't a mind-share survey.

Of course, owner excitement can also be an important driver of sales -- especially for a company that only sold about 22,500 vehicles in 2013. Tesla's high level of owner satisfaction is undoubtedly key to Tesla's strong word-of-mouth marketing.

Tesla store. Image source: Tesla Motors.

Will the excitement be sustainable after early adopters begin to dwindle? The outlook appears favorable. The Model S is renowned for its performance by outsiders, too. Automobile Magazine named the car the "Automobile of the Year" in 2013. Motor Trend also ranked the model first. Consumer Reports' ratings from its own critics even matched the Model S owner ratings of 99 points out of 100.

And until other manufacturers begin offering compelling fully electric vehicles with exhilarating acceleration, meaningful range, and an increasingly comprehensive network of fast charging stations, Tesla also offers an entirely unique experience that can't be found elsewhere. Meanwhile, Tesla is putting the plans in place to bring its more affordable all-electric vehicle to a much larger class of buyers: the mass market.

Warren Buffett's worst auto nightmare (Hint: It's not Tesla)
A major technological shift is happening in the automotive industry. Most people are skeptical about its impact. Warren Buffett isn't one of them. He recently called it a "real threat" to one of his favorite businesses. An executive at Ford called the technology "fantastic." The beauty for investors is that there is an easy way to invest in this megatrend. Click here to access our exclusive report on this stock.

Read/Post Comments (4) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On July 02, 2014, at 12:42 AM, btc909 wrote:

    Can't we just get over Tesla and pay $5 a gallon for Regular Unleaded already! Sheesh.

  • Report this Comment On July 02, 2014, at 2:34 AM, DrDauger wrote:

    @btc: Test drive a Tesla Model S and you'll understand. I thoroughly enjoy my S. It's the car from the future. I sold my E46 M3 because it and all gas cars feel outdated and clunky by comparison to the Tesla.

  • Report this Comment On July 02, 2014, at 11:21 AM, Cencio wrote:

    I have put over 30,000 miles on our Model S P85 in its first 18 months. This is the first car we have ever owned that gets more, not less, satisfying over time. The product itself is thrilling, comfortable, efficient and quiet. We travel long distances routinely using the Supercharger network, and pay nothing for fuel. Our friends love it and quickly make plans to buy their own. But if there is something even better than the car itself, it is the people of Tesla. From rookie service assistants to the top brass, everyone who works for this company is "all in" for customer satisfaction, courtesy, creativity and relentless drive for excellence.

  • Report this Comment On July 04, 2014, at 1:54 PM, peteroo wrote:

    As an owner (19 months, 20K+ smiles), I concur. A great: car, service, follow-up. The periodic WIFI software updates makes my car better today than the day I took delivery. Having the Superchargers is also another great perk. What has Big ICE and Big OIL done for you lately?

    I am confident Tesla will have a huge winner in the Model X. While I may not be a fan of SUV/CUVs others are (I have owned 7 SUVs). I have never heard an SUV owner compliment their SUV’s gasoline or brake consumption. The Model X will have clear advantages in these two areas, along with a lower center of gravity. Also, 53% of Porsche’s production is SUVs (Cayennes) in 2014 it will be a higher percent with the intro of the Macan.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 3014664, ~/Articles/ArticleHandler.aspx, 9/2/2015 8:18:08 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Daniel Sparks

Daniel is a senior technology specialist at The Motley Fool. To get the inside scoop on his coverage of technology companies, follow him on Twitter.

Today's Market

updated Moments ago Sponsored by:
DOW 16,351.38 293.03 1.82%
S&P 500 1,948.86 35.01 1.83%
NASD 4,749.98 113.87 2.46%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/2/2015 4:00 PM
TSLA $247.69 Up +9.06 +3.80%
Tesla Motors CAPS Rating: **