Tesla Motors
Autor: apeticca • February 11, 2016 • Case Study • 589 Words (3 Pages) • 869 Views
Tesla Motors
Tesla’s first step was to figure out how they could go about disrupting the automobile market. Their goal was to mass-market electric cars as soon as possible but, they could not do this with their first car considering they had never even built one. They knew it was going to be expensive so they decided to build a sports car, the Tesla Roadster. This was the start of Elon Musk’s plan to be able to build affordable electric vehicles.
Why is Tesla unique in the marketplace? Well first, they are not only providing the consumer with long-range electric automobiles but new technologies as well. In April of 2015, Tesla introduced a line of home batteries, the Powerwall, to serve as an energy storage system for your home or business. It connects with Solar systems and can be used when power is interrupted or in high demand.
Why is Tesla so successful? They virtually have no competition in their current marketplace. They make the only long-range electric vehicle, the Model S. The pricing on this car puts it in the luxury car category. Tesla is the only company selling high-end, long-range eclectic vehicles at a production volume. Most other car companies just experiment with EVs (Electric Vehicles). This is because most companies make their high margin profits off of their high-end gas powered cars. If they were to delve into the EV market with customers still questioning it, then they could jeopardize their sales of their high-end ICE (Internal Combustion Engine) cars. Also, for now, Tesla’s competition is not other EVs, but instead high-end ICE cars.
Another way Tesla plans on controlling the market is by building its Gigafactory, which is currently under construction just outside of Reno, Nevada. They want to have the factory up and running by 2017 and plan on making all of the batteries for the estimated 500,000 vehicles Tesla plans to build in 2020. This will in tern drive the cost of batteries down nearly 30% enabling them to make affordable EVs. Having this kind of plant can give them more control and make it even harder for competitors to enter their market.
...