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Is Tesla Considered a Luxury Car Brand?

Tesla is not just the leading electric car manufacturer on the market but has also become a truly iconic brand. The company is named after the famous scientist Nicolas Tesla, a pioneer in developing electrical power.

But do the unique features of Tesla cars qualify Elon Musk’s company as a luxury brand?

Tesla is considered one of the major luxury car brands in the US. Though there is no clear definition of a luxury car brand, Tesla cars possess features that make them similar to well-established luxury brands. Tesla is currently one of the leading luxury car brands in the US.

Ever since the first Tesla car, the Roadster, was unveiled to the public in 2008, Tesla has taken the center of attention, not just in the electric car manufacturing business but in the car manufacturing market in general.

With their unique features and capabilities, Tesla cars are truly revolutionary, but does that make them luxurious?

Tesla as a Luxury Brand

First and foremost, it should be noted that there is no definition of what qualifies a car manufacturer as a luxury brand. To be considered a luxury brand, several factors, such as marketing, public perception, and car features, come into play.

In the case of Tesla, the company can be considered a luxury brand. From the start, Tesla’s goal was to establish itself as a luxurious yet affordable car brand.

Though the company ran into obstacles along the way, Tesla did manage to bring these two goals together, as, for the most part, the brand is considered a luxury brand that does not rob its owners of their money.

What Makes Tesla a Luxury Car Brand?

Tesla produces cars that are quite a bit different from well-known luxury brands, such as Mercedes and BMW. This makes some people reject the notion that Tesla is a luxury brand.

So, let us look at what solidifies Tesla as a luxury car brand.

Tesla Owners Are Part of The Tesla Family

A good luxury brand, whether it is Rolex or Ferrari, gives its customers more than just a product. These companies invest a great amount of their time and money in convincing the public and customers that their brand offers its customers more than just a car or a watch.

Take Ferrari, for example. Despite building some of the world’s fastest cars, Ferrari is arguably not a car manufacturer but exclusively a luxury brand.

Ferrari does not just sell cars to anyone who can afford them. Instead, the brand remains exclusive and sells a limited number of models. Ferrari owners thus consider themselves part of a special family that symbolizes more than just a car.

Though Tesla does not have the same approach as Ferrari regarding exclusivity and producing limited edition models, Tesla has also developed a brilliant marketing strategy through social media that gives its customers the feeling of being part of the esteemed Tesla family.  

Tesla Cars Have Unique And Common Luxurious Features

A car’s features (regarding performance, drivability, comfort, and technology) are very important in determining whether it qualifies as a luxury car. So, there is a good reason why a Mercedes-Benz S-Class is considered a luxury car while a Toyota Corolla is not.

As the leading electric car manufacturer, Tesla sets itself apart from other famous luxury brands like Mercedes, BMW, and Ferrari, as Elon Musk’s brand luxury is more focused on technological features.

These superior technological features give Tesla cars incredible performance and range on the road, better than many other luxury cars.

Different Tesla models have several features and functions that make them unique and luxurious to drive:

  • Full self-driving feature
  • State-of-the-art parking sensors
  • Summon feature (the car moves to you)
  • Cinematic experience (or gaming experience)
  • Yoke steering
  • Hidden air vents
  • Ventilated seats
  • Immersive sound system
  • Sentry mode
  • Extravagant interior
  • Tesla App
  • Unrivaled electric power-and drivetrain
  • Dance and karaoke feature

What Is Considered A Luxury Car Brand?

Generally, in terms of vehicles, “luxury” refers to cars equipped with extravagant and comfortable interiors, cutting-edge technology features, and superior performance capabilities.

Interestingly, more and more brands consider themselves luxury brands nowadays, at least to a certain extent. Car companies like Honda and Toyota, which historically have not been known for making luxury cars, now produce some models that can be considered luxurious.

As mentioned, there is no standard definition of a car’s luxury status. With an increasing amount of car brands producing luxury models, the exclusivity and uniqueness of luxury brands may not be as special as they previously were. The consensus for what makes a luxury car luxury may be changing.

What Makes A Car Luxurious?

A significant part of establishing a car brand as luxurious is convincing the public that the brand in question’s car is superior in several ways to the average car on the market. A brand’s marketing team significantly determines whether the public will accept the car’s branding as luxurious.

However, even the most brilliant marketing team on earth cannot convince the public that a car model deserves the status of luxury if it does not at least have some features that most understand as being luxurious.

Generally, such features are not found in average lower-priced cars.

Here are some features that make a brand’s car luxurious:

  • More powerful engines
  • Modern safety and technological features
  • High-quality parts and components
  • Seats equipped with heating and ventilation
  • High-quality sound systems
  • Lavish interiors

Does The Price Matter In Determining Car Luxury?

Ultimately, price does not play a significant role in determining a car’s luxury. However, because luxury car brands invest a lot of money in producing high-quality vehicles, the cost of these cars is higher than non-luxury cars.

You will still find some luxury cars that are cheaper than non-luxury cars. Some manufacturers do not strive to achieve a luxury brand status yet still invest considerable time and money in producing high-performing and comfortable cars with a high price tag.

Is Tesla The Number 1 Luxury Car Brand In The US?

Tesla’s popularity has soared over the last decade. The electric car company has been performing well in the US and overseas since it released its first state-of-the-art self-driving vehicle. More and more people are drawn to having a luxury vehicle that is not reliant on fossil fuels.

Tesla has been performing so well in sales that it surpassed well-established brands like BMW, Lexus, Mercedes-Benz, and Audi to become the best-selling luxury car brand in the US in the first half of 2022.

In addition, the electric car company delivered 343,830 in the third quarter of 2022, almost 100,000 more than in the second quarter of 2022.


There is a consensus that Tesla is a luxury car brand. Tesla cars are equipped with various features, including cutting-edge technology features, superior performance capabilities, and extravagant and comfortable interiors that qualify the cars as luxurious. Tesla is currently one of the best-performing luxury car brands in the US.