Tesla’s greatest opportunity over industry competitors is its unique product. Unlike other EVs on the market, Tesla leaves others behind with the Model S covering nearly 300 miles per vehicle charge. None of the previously mentioned EVs can travel 100 miles per charge, ranging instead between 68 to 93 miles per charge (Schaal, 2015). This high-range combined with luxury features and lower
Not only does this provide the company an opportunity to focus all their efforts on the brand image, but it creates a loyal and devoted customer base, in a sense. Drivers with the mindset that electric vehicles are the future, like Tesla Motors, will share that vision with Tesla and continue to support and buy from them.
Tesla electric cars first appeared as small, sporty two-seaters. On March 26, 2009, the Tesla Model S was released and marketed as the top-performing all-electric luxury SUV in its class. Considering the Model S’s impressive performance capacities, they make a sound argument. David Ener, writer for Canada’s “The Globe and Mail” newspaper describes his experience of driving the Model S
The aim and vison of Tesla Motors is to provide in the short run cars which are affordable to the average consumer, it started making first sport cars for the enthusiast for speed and environmental preservation, moving then to the second phase to the large market who choses affordable compacts and sedans which in turn will promote and stimulate the electric car trend.
The electric car market highly relies on the capacity of the battery that is used to fuel the vehicle and battery costs said to be the biggest components of electric vehicles. In this regard, the recently opened Gigafactory dedicated to high-efficiency battery production would help benefit Tesla to provide high-performance electrical cars unmatched with other
Range Anxiety. The most significant challenge of owning an electric car centers on range anxiety. This is where the owner is concerned that the car may not be able to go far enough on a single charge to get them where they are going. Vehicle range is set by the Environmental Protection Agency (EPA). Range can vary significantly depending on the battery’s size. For example, the Mitsubishi i-MiEV has just 62 miles of total range. On the other hand, the Tesla Model S P85D edition has a range of up to 253 miles. The solution here is to plan your trip to end before the battery runs out of power or to find a charging station to continue your trip.
Stehan further summarizes that potential electrical vehicle drivers are most likely to buy (lease) the Tesla Model 3 (about 55%), which is also the car people are most excited about (about 56%), and current electrical vehicle drivers would most likely get as next car (almost 40%). This suggests that Tesla stands out in consumer intersest, even above Nissan and GM. The Tesla 3 will be discussed more in detail further in this paper.
This was a new and untapped market and Tesla needs to develop a marketing plan that will allow them to stay ahead and be the sought after brand in electric vehicles. They cannot simply rely on word of mouth like they have been doing in the past.
Tesla Motors Incorporated, an American company that designs, produces, and sells electric vehicles and their electric components, has become one of the fastest growing car companies in recent history. The company’s main goal was to start creating electric vehicles that were accessible and affordable to the public. Founded in 2003 and taking off successfully by 2009, Tesla Motors started selling the first mass-produced vehicle to use lithium-ion battery cells and hold a range of greater than 200 miles on just one charge. Along with building their own electric vehicle models, Tesla also builds electric powertrain components for vehicles from other automakers including cars such as the Toyota RAV4 electric vehicle. Tesla has begun to maximize
We can see that Tesla expanded their product line to target multiple consumers in different price range. The company started with high-end luxury sports car targeting early adaptors. On the second stage, Tesla has introduced Model S sedans that help them pass from difficult line from early adaptors to early majority. Moving forward, Tesla is introducing new Electric Vehicles (EV) cross over and many more affordable EV to target a larger majority. This strategy is helping Tesla move from one stage to the next one. The company is planning to release Model X in summer of 2015 and there are possibilities to introduce more affordable EV in the range of $30,000 dollars to compete with BMW 3 series in the fall of 2015.
Product acceptance: Tesla may have trouble with product acceptance. Electronic vehicle that emits no pollutants is attractive to consumers, but science may indicate that the electronic battery charging produces emissions that are harmful in the production of electricity.
With any new product introduction there will be risks. The greatest risk is the possibility that the new product will fail. Fortunately Tesla will be supplying a product that consumers desire and they have built a company based on proven and well calculated strategies. Although it is unlikely that Tesla’s new product would fail completely, there are other risks that could be present during the new product launch. For instance, given there will be a new product, that is going to be produced on a mass scale for a large consumer market, there will be an increased demand on Tesla’s supply chain. With an increased demand on Tesla’s supply chain there will be additional administrative, financial and personnel risks. All of these risks will need to be addressed and planned for appropriately in order to be prepared.