TESLA MOTORS

Introduction

This Project will present the Company Tesla Motors, company engaged in the auto manufacturing market.

Will describe how this company work in a market very competitive, especially for alternative fuel vehicles, that has become more popular with the rise of environmental theme in the world.

In this document It will be described the Brand, market strategies and finally, my opinion of this company.

TESLA MOTORS:

THE COMPANY AND THE BRAND

DESCRIPTION

Tesla Motors is an American automotive and energy storage company that designs, manufactures, and sells electric cars, electric vehicle powertrain components and battery products.

Tesla Motors was established in 2003 by Silicon Valley engineers, as an electric car manufacture who wanted to prove that electric cars could be better than gasoline-powered cars. It was started by Martin Eberhard and Elon Musk (who also co-founded PayPal and is the CEO of SpaceX). Eberhard no longer works there. Today, Elon Musk is the Chief Executive Officer.

Tesla’s engineers first designed a powertrain for a sports car built around an AC induction motor, patented in 1888 by Nikola Tesla, the inventor who inspired the company’s name.

In the 2006 the company launched the production of the first electric sports car, the Roadster

Tesla’s products would be cars without compromise. Each new generation would be increasingly affordable, helping the company work towards its mission: to accelerate the world’s transition to sustainable transport.

Products

Tesla first gained widespread attention following their production of the Tesla Roadster, the first fully electric sports car. The company's second vehicle is the Model S, a fully electric luxury sedan, and its next two vehicles are the Models X and3. As of March 2015, Tesla Motors has delivered about 70,000 electric cars since 2008.

Tesla owners enjoy the benefit of charging at home so they never have to visit a gas station or spend a cent on gasoline. For long distance journeys, Tesla’s Supercharger network provides convenient and free access to high speed charging, replenishing half a charge in as little as 20 minutes.

Factory

Tesla’s vehicles are produced at its factory in Fremont, California, previously home to New United Motor Manufacturing Inc., a joint venture between Toyota and General Motors. The Tesla Factory has returned thousands of jobs to the area and is capable of producing 1,000 cars a week.

Manufacturing process is highly innovated and automated, with multi-function robots those can produce up to 83 vehicles per day and easily reprogrammed to produce different car models.

Points of sales

Tesla operates stores or galleries—usually located in shopping malls—in 22 U.S. states and Washington DC. Customers cannot purchase vehicles from the stores, but must order them on the Tesla Motors website instead. The stores act as showrooms that allow people to learn more about Tesla Motors and its vehicles. The galleries are located in states with more restrictive dealership protection laws, which prevent discussing prices, finances, and test drives, as well as other restrictions.

MARKET STRATEGIES

Tesla's strategy of direct customer sales and owning its own stores and service centers is a significant departure from the standard dealership model currently dominating the U.S. vehicle marketplace. Tesla Motors is the only automaker that sells cars directly to consumers, with all other automakers using independently owned dealerships (partly due to an earlier conflict),although some automakers provide online configuration and/or financing.

Tesla cannot adopt the low cost or hybrid strategies, because it does not have the scale, capital and production capacity to compete on a cost basis, and actually, it is surviving on only due its product uniqueness design and leading-edge technologies, which allows attracting people to buy their cars. Thus, this is a very suitable position for Tesla in current environment that gives core competitive advantage.

Tesla is not just an automaker, but also a technology and design company with a focus on energy innovation.

Target Market

Tesla Motors has a focus of differentiation strategy, concentrating only on small group of people, who are rich and environmental conscious, attracted by stylish and beautiful look of its cars. Because, it will be hard to reach out and compete with other auto-manufactured brands as common person.

Tesla's strategy has been to emulate typical technological-product life cycles and initially enter the automotive market with an expensive, high-end product targeted at affluent buyers.

Marketing

Tesla spends no money on traditional marketing and does not employ an ad agency. Instead, they developed the network of their own stores, located in high foot traffic and wealth‘s districts, to interact brand awareness. Many Hollywood celebrities, including Morgan Freeman and George Clooney are the owners of Model S, have an enormous impact on the popularity and

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