Have you ever experienced sitting in a new Tesla? It feels reminiscent of a scene from Star Trek. Not in the typical sense of “Wow, I’m driving the future,” but rather as though it’s a vehicle from a world where conventional markers of wealth do not exist, and luxury items have taken a backseat to technological innovation.
Captain Picard made that future seem like an appealing place to live. However, it is not the reality we face today, which poses challenges for Elon Musk’s expanding electric vehicle company unless Tesla rapidly enhances its interior offerings.
Tesla has successfully carved a niche by selling high-end electric vehicles (EVs) to affluent customers, largely because there have been no direct comparisons available. If someone wanted to invest over $100,000 in an electric vehicle other than a Tesla today, their best alternative would be a Chevy Bolt—and perhaps another Chevy Bolt.
This scenario is set to change soon. By the end of the decade, luxury automakers like Mercedes, Porsche, Audi, and BMW are poised to introduce fully electric vehicles that boast capabilities and ranges comparable to Tesla’s offerings. Unlike Tesla, however, these manufacturers prioritize luxury, understanding the importance of high-quality materials, sophisticated interior design, and the subtle features that justify spending six figures on a car, despite knowing a $20,000 vehicle could perform just as well.
Moreover, these leading luxury brands have significant resources and established supply networks that enable them to procure high-quality components in large quantities. Companies like Daimler, Volkswagen A.G., and the BMW Group have been refining their luxury car interiors for decades, recognizing that appealing to discerning buyers is critical for their success. While Tesla has not previously focused on luxury options, its long-standing position as the only high-end EV has shielded it from this competition. However, to penetrate the broader market, Tesla will need to excel in all aspects.
Outside of the devoted Teslarati community, how many affluent car buyers would prefer a cabin that looks like this:
…rather than one that resembles this?
Some may contend that Tesla’s strengths in other areas are sufficient to eliminate the need for frills. They might argue that while Mercedes and Audi strive to match the Model S’s range and performance, Tesla is on the verge of deploying a truly self-driving car—rendering traditional metrics of automotive success obsolete.
However, a self-driving car will necessitate an even greater emphasis on interior comfort and luxury. When drivers no longer focus on the road, they will inevitably notice the cabin space, questioning why they are forced into an awkward seating position to watch House of Cards projected on their windshields.
Consider this: After spending a long day at an auto show, where vehicles remain stationary and driving is not a concern, which car would you prefer to sit in for a moment of relaxation—the minimalist Model X or the luxurious 7 Series?
Tesla must recognize this to some degree. While Elon Musk’s visionary ideas often revolve around cross-city tunnels, hyperloop trains, and the possibly holographic nature of existence, he must also perceive an impending future where Tesla’s rivals will catch up technologically, in which case other elements—such as comfort, style, and quality—will gain importance.
The automaker has already begun taking steps indicating its acknowledgment of the need for improved interiors. Recently, Tesla hired Anders Bell, the former head of interior engineering at Volvo, to lead a similar team within the company. Anyone who has experienced the latest Volvos, like the XC90 SUV that Bell helped design, understands why this move is beneficial.
Yet, with every dollar that enters Tesla’s accounts seemingly earmarked for increasing production capacity, launching new models, and advancing autonomy, it remains unclear how the company will allocate resources—financial or political—to elevate its vehicles to legitimate luxury quality anytime soon. Ironically, the more successful Tesla becomes in gaining mainstream acceptance for EVs, the more pronounced this challenge will become.
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