Tesla Motors Races To Double Digit Market Share In California

Image via Flickr/ Michael Hicks

Tesla Motors Inc (NASDAQ:TSLA) is quickly climbing in popularity, especially in California. With celebrities like Steve Wozniak, the co-founder of Apple Inc. (NASDAQ:AAPL), snapping up the all new Model S this week, the company’s market share is getting a great boost.

According to a report from Edmunds, the Tesla line is very popular in the Silicon Valley region, as well as many other wealthy areas. The automotive upstart, founded by Elon Musk, retains a 15.4 percent market share in Atherton, California, while holding 11.9 percent in Los Altos Hills, California.

In seven zip codes in California (of course, they are wealthy areas) Tesla is the number one selling vehicle. According to Jessica Caldwell, senior analyst for Edmunds, the Tesla Model S is the best selling vehicle in Los Altos Hills, Montecito, Monte Sereno, and Woodside, all in California’s extreme upper crust.

Why The Model S?

According to Caldwell’s report, people are not snapping up this car simply because it is expensive, or as a status symbol. She believes that the car is actually desirable to the people purchasing it because of the features it offers. It is not the most expensive car on the market, so purchasing it as a status symbol doesn’t add up.

While the car is almost exclusive to wealthy people at the moment, the trends set by the elite of America often make their way downstream, to the common man as well. For instance, remember when the iPhone was a status symbol? Now it is a household name that is made affordable by network deals with Apple.

Who Loves Tesla More Than Cali?

While Californians seem to be infatuated with the Model S, Norway is even more enthralled. With the Model S being the number one sold vehicle for the month of September there, even the used ones are going at a premium price.

Tesla Motors Inc (NASDAQ:TSLA) is currently up $2.56 per share, or 1.6 percent, to trade at $162.50 per share.

Disclosure: Author has no position in stocks mentioned, nor does he intend to initiate one in the next 48 hours.