Tesla, the leading luxury car seller in the U.S., could be an even bigger winner if a prolonged strike hits pricey American-made vehicles, especially trucks and SUVs.
Ivan Drury, director of insights at car shopping site Edmunds, tells Penta that a long strike could lead to the temporary closure of many critical auto suppliers, thus idling assembly lines across the country.According to reports from Automotive News and Experian, the three leading luxury car brands last year in terms of U.S. registrations were, in this order: Tesla , BMW and Mercedes . Registrations of new luxury cars slipped 3.5% in 2022, to a number slightly more than 2 million.
It’s getting harder to define “luxury” these days. Are Teslas luxury cars? Based on price and features, some, like the Models X, S, and Y probably are, but the Model 3 maybe not. The forthcoming Roadster and Cybertruck are both pricey. “If these vehicles see restricted supply due to production stoppages the prices will rise,” he says. “How much they rise will be entirely dependent on the length of the strike, but anything more than a couple weeks will begin to manifest in dealer lots running low and demand outstripping supply. In that case, buyers with a specific domestic model in mind might want to make their purchase sooner than later.
Cadillac is currently selling one luxury-oriented electric, the 2023 Lyriq, starting at US$59,990, but by the end of the year it will be joined by the more rarefied US$340,000 Celestiq. The Lyriq is made in Spring Hill, Tennessee, and the Celestiq will be built in Warren, Michigan. Those plants could get shut down temporarily.