Why Is Tesla Competitive In China

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

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 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.

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.

The car business, including manufacturing, distribution and service, is one of the largest industries in the United States. Ford, General Motors, and Chrysler make up 49% of this market and are known as the “Big Three”. Since WWII, no U.S. company, including the Big Three, has been successful in mass-producing a vehicle in the car industry. Perhaps with Tesla’s Blue Ocean Strategy, their innovative way of designing, developing and marketing the electric vehicle, most likely will continue to be successful in this market.

The American engineers that formed Tesla Motors wanted to prove that electric cars could be better than gasoline powered cars. Tesla’s products would be cars without compromise and the mission was “to accelerate the world’s transition to sustainable energy”. Since they launched their first car, they have only improved their products and today Tesla have three electric cars on the market

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.

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.

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

Tesla is known most for the innovative green marketing strategy. They are doing green campaign and endorse environmental issue event, which is the main image of Tesla by producing electric car to obtain better place for living on earth. Their

Tesla Motors is an american automaker and energy company founded by Elon Musk, Martin Eberhard, Marc tarpenning, JB Straubel, and Ian Wright with the idea that electric cars are better than gasoline vehicles. The company designs, manufactures, and sells electric cars and electric vehicle powertrain components to other automotive companies such as Daimler and Toyota (Tesla, 2013). Tesla is stationed in Palo Alto and has wholly-owned subsidiaries in North America, Europe and Asia. It has 31 retail locations and service shops spread worldwide, and more stores are expected to be opened in the future (tesla, 2013). Tesla’s goal is to maintain profitability and offer high performance high-end electric vehicles for the average consumer. offer an efficient alternative to gasoline fueled vehicles .Tesla gained initial attention with the launch of the first zero emission electric sports car, the Tesla Roadster in 2008. For the company 's second vehicle, Tesla developed a zero emission luxury electric powered sedan the Model S. Tesla designs, develops, and manufactures lithium-ion battery packs, electric motors, and components for its own vehicles and some competitors like Daimler and Toyota.

When you talk about a world leader in electric vehicle (EV) business, there is one name that always jump right into people’s minds. That is Tesla. Tesla Motors Inc. is the world’s largest manufacturer and vendor of electric vehicles (EV) powertrains. The company under a multiyear agreement with Toyota also supplies full powertrain for Toyota RAV4 EV (Tesla Motors Inc., 2015). Tesla has expanded its relationships with Mercedes Benz as well. Under the A-Class and Smart for two programs, Tesla manufactures two brands of electric vehicles for Mercedes Benz. Currently, Tesla and Mercedes have plans that are already underway to start the development of an M-B vehicle that has the Tesla powertrain in it. Reports from these two leading car manufactures indicate that the program will commence sooner than expected.

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.

New Competition: Tesla Motors is not just competing with the regular car and automobile manufacture but needs to compete against a technology which has been in use for over hundred years i.e. the combustion engines. Further people are often resistant to change and it is a challenging task for the company to convince their potential customers on the use of electric cars over combustion cars which may take a lot of time and directly affect the sales and revenue of the company (Woodyard, Chris 2008).

One of the main political factors facing Tesla in the US are the incentives offered by different states and cities to Tesla owners. They must co-ordinate with these policy makers and inform the consumer. In China, the key political factor is that “the Chinese government wants to put around 5 million electric or plug-in hybrid vehicles on its roads by 2020, but to date reports have confirmed that there are a mere 70,000 electric vehicles plying on China’s roads. In order to promote EV sales, the government has set a target that 30% of government vehicles purchased by 2016 should be EVs. To reach the target set for 2020, the Chinese government is ready to fund nearly $16 billion to build electric charging stations. To further promote EVs among Chinese car buyers, the government is looking to impose a new tax on gasoline engines and has renewed the private-buyer subsidies for electric-powered vehicles for another three years.” (GuruFocus. 2014.