Aspirational
The market for fully electric vehicles is growing.
Some reasons behind the growth include
Tesla has been able to catch the attention of people seeking to buy electric cars and has also become an aspirational product.
The Beginning Approach
Tesla took a unique approach to getting its first vehicle in the market.
It did not try to build a relatively affordable car that it could mass produce and market. Instead it took the opposite approach, focusing on creating a compelling car.
It was costly to build an electric car in the "initial days". Tesla therefore took the approach of making an "electric sports car". An electric sports car could match upto price of other gasoline based sports cars and yet be aspirational.
The Next Stage
Once Tesla established its brand it went in for growth. Tesla's current business model is based on
Doing things differently
According to Harvard Business Review Tesla does four things which sets itself apart
The market for fully electric vehicles is growing.
Some reasons behind the growth include
- new regulations on safety
- vehicle emissions
- technological advances, and
- shifting customer needs and expectations.
Tesla has been able to catch the attention of people seeking to buy electric cars and has also become an aspirational product.
The Beginning Approach
Tesla took a unique approach to getting its first vehicle in the market.
It did not try to build a relatively affordable car that it could mass produce and market. Instead it took the opposite approach, focusing on creating a compelling car.
It was costly to build an electric car in the "initial days". Tesla therefore took the approach of making an "electric sports car". An electric sports car could match upto price of other gasoline based sports cars and yet be aspirational.
The Next Stage
Once Tesla established its brand it went in for growth. Tesla's current business model is based on
- Direct Sales Tesla has created an international network of company-owned showrooms and galleries. They are located mostly in prominent urban centers around the world. Tesla believes this helps it in the speed of its product development.
- Supercharger Network Tesla has created its own network of Supercharger stations. These are places where drivers can fully charge their Tesla vehicles in about 30 minutes for free. This is to speed up the rate of adoption for electric cars.
Doing things differently
According to Harvard Business Review Tesla does four things which sets itself apart
- It develops cars as if it is a software product.
- It simplifies buying process putting the consumer in control.
- It leverages its technological prowess in battery technology to minimise the total cost of ownership over the vehicle's timeline.
- It attaches itself to the predominant market trend of the day - electric vehicles.
