What Does It Happen?

Tesla Motors Inc. (Tesla) was founded in 2003 by a group of engineers in Silicon Valley. Tesla has been in the business of designing and manufacturing fully electric vehicles (EVs). The company’s name came from Nikola Tesla, who influenced the design of the powertrain for their first vehicle. Tesla’s CEO is Elon Musk, he had a few goals for his company. First, was to build a sportscar. The next goal was to use that money to design and sell a more affordable car. And then use that money to design an even more affordable mass-market car. Finally in 2008, Tesla released their first electric vehicle, the convertible sportscar called the Roadster, which is now no longer available to buy. In order to raise funds for more research and development, Tesla had their initial public offering of shares in 2010 at $19 per share, under the ticker symbol TSLA. Today, Tesla stock goes for approximately $232(Market Watch, 2016). In 2012, Tesla released the Model S, which was the world’s first premium electric sedan. To date, Tesla has sold and delivered approximately 50,580 vehicles, most of which are the Model S. In 2016, Tesla has announced that they will release a new vehicle, called the Model X, which will be an electric crossover utility vehicle. In addition to vehicle sales, Tesla also develops batteries for their cars, and is in the process of building a gigafactory which is expected to produce more lithium ion batteries than all of the other manufacturers of these

Tesla`s current objectives include creating a high demand for electric vehicles which ultimately will raise sales. This will be achieved as more awareness on the harm gasoline emissions cause on the environment is shown, and knowledge on electrical powered cars is gained. Tesla also plans to create customer loyalty with current customers and create customer referrals. Tesla will achieve this by continuing to have regular customer events, such as show rooms which display their new technology.

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 Motor’s competitive advantage is producing purely electric vehicles that can compete with gas powered vehicles in terms of style, performance, and roominess. There are some other purely electric vehicles. However, they are all quite small in comparison and styled in that smart car shape. Whereas, Tesla’s Roadster has a body that is sleek and sporty. Then they have a Model S which is a roomy sedan.

Tesla Motors is a very forward thinking company that interests lay more in the future than the present. The entire basis of Tesla Motors is the realistic theory that sometime in the next couple decades, the world will be completely empty of petroleum, forcing those who choose to use automobiles to switch to non gas powered vehicles. Being a company based on electric vehicles, as long as this theory comes to fruition, they are set to be successful. According to Tesla Motors’ website, their mission statement is to accelerate the advent of sustainable transport by bringing compelling mass market electric cars to market as soon as possible. On the same lines as Tesla Motor’s mission statement, their vision statement is to create the most compelling car company of the 21st century by driving the world’s transition to electric vehicles. According to Tesla Motors’ mission and vision statement, it is clear to see that electric power is the core of what the entire company was founded upon.

In the market today, there are some factors that can pose a problem to all the market players’ including the Model S.  The idea of fully electric vehicles is still a new idea in the eyes of consumers.  The major concern for the market would be the location and proximity of charging stations for the vehicles.  Major cities are starting to increase the amounts that are located within them, but are still not as readily

Threat of New Entrants: Tesla’s ingenuity in building the most efficient fully-electric cars blows up the competition in amount of range on a single charge (Up to 300 miles). The Ford Focus EV only touts a 100-mile range along with the Nissan Leaf while the Toyota Prius C only has a 50-mile range. (Mangram, 2012, pgs. 300-301). However, there seems to be an influx of competitors out there that can roll with the Tesla such as the Dodge Circuit that has a 200-mile range which will make Tesla sweat a little bit (Mangram, 2012, pg. 300). Then again, Tesla is 100% electric where all other competitors are hybrids (electric and gasoline).

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

Limited Charging Infrastructure: Tesla Motors has a unique product of its won in terms of its environment friendly electronic cars and the company may experience a large demand of its products in the international market. However, there is a huge risk of failing in the underdeveloped and developing economies of the globe due to lack of charging infrastructure which may give the combustion cars an added advantage and swipe off large potential market of Tesla Motors.

In 2012, Tesla Motors introduced the world’s first prestige electric sedan named Model S. The car had a fully electric engine and built with a four-door style vehicle. Tesla’s engineers made the automobile have a driving range of 265 miles and an acceleration of a sports car: 0 to 60 mph in approximately five seconds; Model S earned the Motor Trend’s 2013 Car of the Year. Also in this year, Tesla started to build stations called Superchargers to charge the ion-lithium batteries, later changed to Tesla Stations, in North America, Europe, and Asia Pacific for customers to charge their cars’ batteries speedily at no cost (“About Tesla”).

Tesla is an automotive manufacturer that pioneered electric vehicles. Also Tesla electric car not only has a selling point, but also can replace the gasoline with batteries. Therefore, Tesla technology is very good and time-saving in the production process. But in this respect, Tesla will bring some advantages and disadvantages.

Tesla Motors is focused on differentiation strategy, offering electric vehicles to a Premium market with no other comparable alternatives (Tesla Roadster was the first electric sport vehicle in the world), disrupting the market with a high reliability and performance EV (see Exhibit 2 ) coupled with features enhancing customer satisfaction of those customers looking for style and design in an EV. The R&D department is particularly important in order to drive down the costs. The sale of each Tesla car helps to pay for the development of a new and more affordable electrical vehicle, reaching the final objective of create an affordable mass-market of electrical vehicles.

In order to further their control of the EV market, we have developed a strategy to produce an entry level, luxury electronic vehicle that maintains Tesla’s core values which allows them to compete on a broader scale with electronic vehicles and hybrids. After taking everything into consideration, we believe that our strategy will allow Tesla to gain market share, gain brand awareness, generate brand loyalty and earn profits through our new programs. We have developed the following plan for Tesla: We will develop a brand new, entry level luxury sedan that is fully electric and named the Gen3. It will still have the core components to a Tesla vehicle, but created with a budget in mind to grow the potential target market. This will allow more customers to get their hands on a fully electric vehicle at an affordable price, while still being able to grow the Tesla brand. We have also introduced a variety of programs in order to improve brand loyalty as well as giving more options for purchase, including Amplify Your Ride and the Test Drive America campaigns. We will also launch an integrated marking campaign with advertisements in magazines and though web sources. The first car will ship in early 2015 and will be issued to those who reserved the vehicle in the second half of 2014. We will host the Test Drive America campaign in the second half of the year after the car has been fully announced. This will give potential drivers the chance to

Tesla Motors is an automaker based in Palo Alto, California. In addition to producing electric cars, the company is “also a technology and design company with a focus on energy innovation” (Tesla, 2017). Tesla employs a vertically integrated strategy, centered on the in-house production of nearly all of the components that go into its cars – unlike its competitors that outsource particular production processes (Lambert, 2016). Currently, the company manufactures three electric car models, which include: (1) the Tesla Roadster; (2) Model S, and; (3) Model X (Mangram, 2012).

As an automobile manufacturer, Tesla is subject to complex challenges. Sustainability comes in many forms, Tesla’s first and foremost will be sustaining its own business. The government action of fully supporting the electric vehicles will open mainstream manufacturers like GM, Toyota, Volkswagen, and Daimler AG to increase spending in research and development for models such as hybrids, plug-ins and pure battery electric vehicles to their portfolio of vehicles. Moreover, competition will increase substantially, by the government