Tesl Industry, Situation, And Strategic Analysis

Two parameters define Tesla’s industry competitive environment: what Tesla is today and what Tesla hopes to become in the near future. Today Tesla delivers an EV in the high-end luxury market ($70k+), but plans to deliver an affordable ($35K) small sized sedan in the next few years (Kaufman, 2015). The differences between Tesla’s current and future plans affect the threats and opportunities for potential entrants, industry competitors, and buyers in the near term and long term.

Tesla Motors was founded during the year of 2003 in silicon valley, with one goal; to create a more sustainable way to power vehicles. Tesla strives to produce high quality electric cars at an affordable price. Tesla produces three models; the model s, the model x and the model 3, a wide price range allows anyone to make the transition from gasoline powered vehicles to electric powered vehicles.

The car market has been ran by companies such as Volkswagen, Toyota, Ford, BMW, and many other companies, but one of the newer, up and coming companies in this market is Tesla Motors Inc. Tesla has been around for a little over 10 years, and have come quite a long way from where they began. Tesla now sells luxury electric vehicles different than any other electric vehicles today, and they have big plans for expansion in the future. Tesla may not be one of the biggest car companies today, but one day they will be considered alongside companies such as Toyota and Ford.

Tesla Motors Inc is one of the leading companies for designs, develops, manufactures, and  selling electric cars and energy storage products. Founded in 2003 the major specialization of the company is software for automated cars, cars powered by electric energy and solar for home power.

Tesla is an auto car company of the 21st century founded by Elon Musk, Martin Eberhard, JB Straubel and Ian Wright. The company also manufactures power walls and battery charging equipment. Tesla is well known for the production of its first sports car Tesla Roadster coupled with two other cars Tesla Model S and the current Tesla Model X. Elon Musk is the face of the company and has driven the company through odds building confidence among its shareholders and customers (Marcovici, 2013, p 45). The company’s’ shares are often overpriced, thanks to loyal customers and investors of Tesla. Musk’s vision of the company is to mass-produce electric vehicles at a low cost and capture the American market.

They've got the looks, they've got the skills and now Tesla has the price in order to compete in the global market effectively. There's no doubt they will create a big headache for some of the leading automakers, but there is one thing standing in the way of Tesla world domination. Elon Musk has always explained that his company is production restricted. This is a strategic move in order to keep demand at bay. However, as Tesla's become more popular and more affordable, demand will only rise. If they want to compete, they will have to up their production game. It's a risk that could very well sacrifice quality, but it may be the path to the

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 has become the first automaker to implement a direct sales business model, they don’t rely on middlemen to get their product to the masses, instead they go directly from the factory to the future owners via online sales. The people who are already costumers are satisfied and this makes their user base grow via word of mouth.

Throughout the 20th century, GM, Ford, and Chrysler have held a firm grip on the U.S. car market. GM even was even able to control 50% of the market until about 1980. Ford and Chrysler also did considerable well during that period. However, globalization allowed foreign carmakers to maneuver their way into the U.S. market. Intensified competition then began to threaten the market shares of those leading companies. German companies entered the market with cars like Volkswagen, Daimler, and BMW. They now currently own Porsche and Audi. The Japanese car industry have the luxury of owning cars such as the Honda, Toyota, and Nissan while Koreans have joined the market with

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

Summer 2012 NEW YORK UNIVERSITY STRATEGIC MARKETING PLAN Strategic Marketing Plan Model S Premium Electric Car, Tesla Motors Inc August 20, 2012. New York University Author: Partha Mitra 2 Strategic Marketing Revision History Date Version Description

Founded in 2003, Tesla is an electric car manufacture company that started in California, they are considered leader in its category. Tesla electric cars not only outsold Nissan Leaf and GM electric cars in US. Their latest Model S had also outsold BMW 7, Audi 8. Tesla is also targeting SUV consumers with their Model X.

Between 2003 and 2013 Tesla was arguably one of the most controversial companies. An innovative company with a breakdown idea, had no financial success in its first decade. With the addition of Elon Musk in 2008, Tesla had a fresh new face at the stern of its company and was poised to make big strides into the future. Those strides finally broke through in 2013 with its first truly positive financial year. However, this year was not without trouble as Tesla found itself in the news for the wrong reasons. On several occasions their Model S design had issues with car fires. Though this did not cause a complete catastrophe, it cased questions to the true safety of their vehicles. Tesla would fight back by arguing the safety of their vehicles saved the drivers lives in addition to unforeseen circumstances that caused the fires. Because of these incidents, investors did get spooked and expectation for the remainder of 2013 and projected 2014 were lowered, yet once again Tesla powered through and had their best year of existence. With these above factors, Tesla is at a true crossroads: do they continue the uphill climb that 2013 presented, or do they falter and fall pretty to its competitors.

Current market segments of Tesla China are generally based on income level and an added-up function of technology savviness. Such market segment pattern can be easily seen through Tesla 's development track in China and its technological centric product strategy. The characteristic of such market segments is quite straight-forward, much resembles the characteristic of Tesla Motors itself. Under the new market outlook, however, it can hardly afford to ignore the lower income fan base which would have a huge positive promotional effect for Tesla brand.

Supply chain management: Tesla is building a corporate infrastructure to handle all aspects of production. Their supply chain process beginning in research and development, to manufacturing, and distribution is owned and controlled solely by Tesla.