[zissou]

Porsche is owned by the Volkswagen Group who has a completely different strategy than Tesla. Volkswagen already makes money off makes and models marketed across the spectrum of consumers (from Skoda to SEAT, VW, Audi, Porsche, Bentley, Lamborghini, Buggati) -- all of which are owned by VW.

The Volkswagen Group doesn't get nearly as much press as it should, but I suppose the incumbent doesn't need it -- they already sell hundreds of thousands of vehicles world wide every year.

That being said, Tesla certainly has a long ways to go, but I think they have a good strategy going forward. Not to mention, I think the Model S is a beautiful car.

[001sky]

Porsche was the most profitable auto company prior to the merger, so not sure this is relavant.

Porsche is profitable because (1) they are cost effective to produce; and (2) the effectively sell at well above sticker value, as the options are significantly marked up.

So, their model is very effective in terms of pulling dollars out of the pockets of those in clined already to buy a porsche.

While still leaving a base model within reach for some as well.

[larrys]

"So, their model is very effective in terms of pulling dollars out of the pockets of those in clined already to buy a porsche."

I own one and can attest to the "inclined already to buy a Porsche". Porsche is an old brand with meaning it's not bought because it's some kind of rational decision.

The seats in the back of the 911 won't even hold an adult.

You know when I found that out?

When I went to pick it up on delivery.

Was I mad?

No I was glad I didn't know that when I made the original buying decision.

Did it change my thoughts on buying another?

No, I traded it in in less than 1 year and bought another one (they just changed the design last year and I had to have the newer model after getting the latest marketing brochure which I salivated over.)

How do I get treated at the dealership? Not that great I got much better treatment at BMW. Will it matter to me in terms of buying another one? No. (Sounds a bit similar to Apple in past years in terms of treatment of customers, right?)

I've always had nice cars pretty much. But the Porsche is the first one that I literally get comments from people several times a month.

[mbreese]

VW probably also doesn't want their product lines necessarily linked together in people's minds. I mean, if you're looking to buy a Porsche or Lambo, do you want people thinking VW Beetle?

Same reason why Lexus doesn't play up their Toyota lineage.

So, VW group (and all large manufacturers) necessarily have to limit their press to the individual product lines as opposed to the whole auto group.

[bluedevil2k]

Nice aside - read up on the Volkswagen Phaeton - shows that even a company like VW forgets this basic marketing tool sometimes.