The Model Competitive Environment : Tesla

1458 WordsJan 27, 20166 Pages
Industry Competitive Environment 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. Industry Competitors As the EV and HEV trend strengthens, key industry players are offering models that directly compete with Tesla. Competing models include the Chevy Volt and Spark, Nissan Leaf, Toyota Prius, Ford Focus, Honda Fit, Smart Car, Volkswagen Golf, BMW i3, and Mercedes Benz B-class EV (Grant, 2015). However, Elon Musk does not view these offerings as Tesla’s competition. With only 1% of total vehicle sales going to non-hydrocarbon burning cars, Musk identifies Tesla’s true competition as the gasoline cars with production rates of about 100 million per year (Musk 2014). 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

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