Tesla (TSLA) Succeeds at Selling Model S in Key Market...And That's About It

November 1, 2013 2:41 PM EDT
Tesla Motors (Nasdaq: TSLA) may be meeting its market objective right now, but will others follow?

According to Edmunds.com and cited by CNET on Friday, Tesla's Model S is the number one vehicle registered in eight of the top 25 wealthiest U.S. zip codes. There is a catch, however: all of the zip codes are located in California.

With a median home price of $6.67 million and $5.41 million, the Model S was number one in Atherton, California, and Los Altos Hills, California, respectively. The total combined population is roughly 15,400 residents.

Other California locations with the Model S as the number one choice include Portola Valley, Los Altos Hills (different zip code), and Montecito.

In New York, which largely houses the majority of the top 25 wealthiest zip codes, residents appear to favor Mercedes-Benz, both the C- and GL-Class models. Aspen, Colorado, is particular to Ford's (NYSE: F) F-Series pickups.

So, while Tesla is doing a great job of tapping its core market, those in colder climates might not be as eager to adopt battery technology just yet.

Also of note, California is mulling whether to cut credits Tesla receives on its Model S by 2015. No decision has been made yet, but it might make investors think of the regulatory environment that Tesla is navigating each day in order to expand distribution channels while also remaining profitable (well, pro forma profitable). For more on Tesla and its recent trading activity, click here.

Shares are up 0.9 percent Friday.

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