Tesla 's Model Of A Luxury Sedan

1580 WordsMay 9, 20177 Pages
Identification Tesla has a few elements to their strategy, one being they keep their product line simple. Elon Musk was highly involved with the production of the Tesla Roadster and as of December 2012 the production of this model has been ended due to the introduction of the Model S, a luxury sedan. Another key element of Tesla Motor’s Strategy is the technology and product development that they put into designing their products. According to the text, since Tesla has been founded, over $900 million has been spent on R&D activities to develop the best version of their product. They have also invested time in researching battery packs, power electronics, induction motors, gearbox’s, and control software (Arthur, 2015). Manufacturing is…show more content…
They have since added two new models that weren’t mentioned in this case study but all of their vehicles are designed for niche market of consumers who have the money and resources to own a Tesla vehicle. Analysis and Evaluation One part of his strategy that I am impressed with is that Elon Musk has created for Tesla is the use of sales galleries and show rooms as well as the design of the service centers for its customers. Elon Musk has created a competitive advantage for Tesla with having its customers come to sales galleries and service centers that are franchises of Tesla which allows for a relationship to be formed between them and the consumer. The personal relationship that is created when buying from Tesla helps to put Tesla at the top of mind of its consumers and hopefully creates lifetime relationship between Tesla and the consumer. Elon Musk also uses partnerships strategically to better the Tesla brand and further develop them and use this a source of revenue for the company. Tesla partnered with a number of other companies including Dailmer, which brought in 15.7 million dollars in development services revenue. Toyota was also a company that Tesla partnered with to help develop some of their vehicles one of which being to help develop an electric powertrain system for Toyota’s compact SUV the Toyota RAV4. This generated 45.1 million dollars in revenue for Tesla after a powertrain system sale to Toyota. I am
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