Tesla Case Study
Tesla Motors was founded in July 2003 by Martin Eberhard and Marc Tarpenning with Elon Musk joining the company in February of 2004 providing the majority of the company’s financing in the beginning. The goal of Tesla was and still is to create affordable electric vehicles to the mass market. The initial goal was to start with a premium sports car for early adopters which would then help to finance the company’s sedans and compacts. Today, Tesla has established itself as a market leader in the development and innovation of the electric car. Tesla believes that their strategy will allow them to “gain market share, gain brand awareness, generate brand loyalty and earn profits through new programs” (Andrade, 2013, para …show more content…
Tesla is looking to market to generation Y customers and the mid-20’s too early 40’s middle class working adults. Tesla is looking to segment their market into three categories; “ecofriendly consumers, tech savvy and entry level luxury cars” (Andrade, 2013, para 4). The target price for the entry level luxury car will be around $30,000 to help attract the younger professionals.
Why do Consumers Choose Tesla, Customer Value?
There are two primary factors which appear to attract the consumer to Tesla electric vehicles. Surprisingly, the environmental interest of having a fossil-fuel free transport is second to the excitement of being on the leading edge of technology, according to Oulton, 2016. Tesla’s initiatives to develop programs such as specialized services and battery exchange continue to separate them from the competition. Additionally, consumers within the automotive electric vehicle (EV) industry are attracted to Tesla based on the following attributes which create specific appeal to the Tesla.
• The Tesla sales experience sets them apart from a normal dealership. They have a direct to consumer model rather than dealerships. They strive to make customers feel like they are humans and not just sales …show more content…
Tesla models offer an “Autopilot” mode, a feature, which allows the driver to turn over some control to the car. Sensors allow the car to stay within its lane and slow down if a car ahead is driving at a slower speed. Tesla models also lead the electric car industry in range, an important factor to customers. Competing all electric models offer an estimated range of around 100 miles per full charge. Depending on the model and options and driving habits, Tesla models can travel up to 300 miles between full