The Model Competitive Environment : Tesla

Their slogan is, “Burn rubber, not gasoline.” This is extremely beneficial for the company because it gives them a brand image and a concentration, as well as the ability to focus all of their efforts on being the best at electric vehicles. They’ve entirely ignored alternatives like diesel, ethanol, and hybrids. They’ve strayed from the known gas-electric hybrid, and plug-in hybrid to focus on their initial goal; zero-emissions, zero fuel. Competing companies like Ford, Chevrolet, and Toyota are famous for the combination car, that can’t be considered a true electric vehicle without the plug-in and charge feature, and by still being partially fuel driven. On top of that, the Tesla Model S uses about half the energy of a Toyota Prius per mile, and achieves double the range. By focusing exclusively on the true electric vehicle, with a mindset that oil could run out one day, Tesla is unique and far ahead of the game.

I look at some of the vehicles and think of toasters” (Spector). This article discusses the pending issues, and the hurdles Tesla still has to overcome. They recently purchased a new warehouse for battery production, which will address consumers concern about taking long trips without having to stop for long periods of time to charge their vehicles. Tesla also stresses their push to have more charging stations placed throughout the country that will charge vehicles faster, allowing for road trips. According to the Alliance of Automobile Manufacturers, “The 15 fully electric vehicles on sale last year registered 0.4% of overall auto purchases in the U.S.” (Spector). With fully electric vehicles still being so new it is expected to be a small portion of the total vehicles

Tesla Motors has the opportunity to promote electric vehicles in the context of climate change concerns, expanding environmental programs and rising waste disposal standards. For example, the company's electric vehicles are considered suitable for directly addressing these external factors related to business sustainability and environmental protection products. What's more, Tesla is developing a battery pack that will work with solar panels to help make use of the sun's abundant energy. It makes Tesla more than greener.

They sell electric vehicles, and electric vehicles only. The most popular car Tesla has released is the Model S, which is a luxury electric sedan that sells for $70,000. The Model S was voted the Motor Trend Car of 2013, and according to Tesla is one of the safest cars ever, but there is one big difference from any other electric car. The battery in each Tesla car is actually made up of thousands of lithium-ion cells, which is different than most electric vehicles. Electricity charges a battery to give the Model S power for a certain period of time, and is similar to a laptop or smartphone. In fact, the company uses lithium-ion batteries just like the type that powers laptops worldwide. This is the key difference between a Tesla electric car and a hybrid, it is all electric and has to be charged, but a car such as a Prius runs partially on gasoline but does not have to be charged. There are a few ways to charge the car. Tesla suggest you get a high power wall charger installed, and there are also supercharging stations across the United States and Canada. When fully charged, the Model S can travel at 55 miles per hour for up to 300 miles. The technology that is put in these cars is so far ahead of the competition; Tesla could very easily be the car company of the future.

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

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.

2) For Tesla, a new firm that makes an electric sports car, estimating how many competitors will make electric vehicles and what kinds they will make, is:

Tesla Motors target their vehicles towards the upper middle class, where not everyone would be able to afford. Tesla is currently the only manufacturer of a zero emission sports car. While the threat of substitutes within the electric car industry Tesla faces is currently low, but due to the price premium of the product causes Tesla to face other substitutes such as gas vehicles, hybrids, mass transportation, and hydrogen vehicles. As Tesla only targets the upper middle class, environmental conservatives and those who are looking for a high end luxury car, most consumers who are price conscious would most likely choose the alternatives because of Tesla’s high price on their electric cars. Tesla faces substitute competitions from General Motors, Toyota, BMW, and Daimler AG, Nissan and Honda as some of these companies are also starting to build their own electric cars to get into the electric car business, which will increase the number of substitutes in this industry. With each every coming year more manufacturers are beginning to go towards building their own electric motor technology to enter the electric car market.

Unlike many other motor companies’ tesla is committed to introducing a new way of driving, a new era of cars and transforming the way we drive using these innovative technologies. Tesla was not the first company to begin the creation of electric powered cars, but they were the first company to create a sleek and luxury electric car. A unique aspect to tesla is that this company was the first company to also create a car that was American made, most cars have their equipment that comes from all around the world, parts coming from many different areas mostly Europe or China. This is very appealing to customers that are interested in American made products especially a car that doesn’t harm the environment as much as a gas powered car does. Also tesla is very efficient in their battery charge, for every full tank a 200 mile trip is able to be made.

Tesla Motors is among the top 25 companies “going green” for our economy. Tesla motors is a venture aimed at proving that cars can be environmentally friendly, without giving up the speed and power, purchasers love. The cost of running this amazing, green driving machine is a mere 2 cents per mile. (Ryan, 2008) Tesla Motors is a company looking to produce a high-performance electric sports car, and is backed by a number of high-profile investors. Introduced in June 2006 to the public complete with a test drive by California Governor Arnold Schwarzenegger, the Tesla Roadster is able to go from 0 to 60 in 4

Tesla Motors predominantly reflects the environmental aspect of sustainability as on contrary to typical car manufacturers, it has adapted the concept of electric cars as their product which reduce several environmental challenges that conventional cars cannot. The benefits of electric cars include eco friendliness as it does not contaminate the air, energy required for running the cars is cheaper than diesel and fuel, batteries of the cars can be charged through sunlight, low noise pollution, and its “easy assembly and simple design provide reliability and service life of an electric vehicle, expand service interval mileage “resulting in significant cost savings for the owner” (Vynakov & Savolova, 2016). Tesla has a leading-edge innovation in lithium-ion based battery technology which is 500 pounds more lighter then acid-based battery and has a range of up to 300 miles, it is far superior then the original acid-based battery which was extremely bulky and weighed a more then lithium ion-based battery and the acid-based battery had a limited range of only about 60 miles (Mangram, M., 2012).

Tesla Motors is a electric car company that specializes in cutting-edge technologies and creating new jobs. Right now, Tesla is in the process of making a new super-factory for electric cars in the US that will require over 6,500 jobs. This new factory and search for effective AFVs is why Tesla’s CEO Elon Musk expects there to be over 500,000 Tesla vehicles on the roads by 2020 (4). This optimistic CEO believes this because Tesla is creating stylish new electric cars that can go zero to sixty in under four seconds, has a top speed of 125 mph, and can go over 220 miles per charge. With a price tag at $69,900, this company is beginning to make cars that are approaching reasonable prices for consumers (5).

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.

Tesla has couples of competitor when they enter in China market. Since China has improved technology factors, the country finding alternative innovation to overcome unrenewable sources such as oil and fuel. For this many car company in China came out with electric car as a solution for this situation. Tesla would have three major electric car company as their primary competitors which are BYD Auto, Chery and Roewe. Other than that, they also have secondary competitor who are creating a substitutional product for electric car known as Hanergy (Solar Powered) and finally Tesla’s possible new competitor will be Le Eco.