Essay on Tesla Case Study

3367 Words 14 Pages
1. Introduction
In light of the constant rises in petroleum prices, climate changes and an economy recovering from the effects of the recent economic downturn, consumers have started to reconsider the usage of electric cars (Global EV Outlook, 2013). Electric Vehicles [EV] have been around since the 1830s, yet it is only recently that countries have experienced an increase in their production thus redefining tomorrow’s automobile and transportation industry. This year, the global production of EV is predicted to rise by 67% (IHS, 2014).
1.1 Market Trends
According to the Green Car Guide (2014), top Battery Electric Vehicles (BEVs) models include the BMW I3, Renault Zoe, Nissan Leaf
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According to Mangram, the name Tesla is perceived as a high-tech, reliable and environmental friendly brand (2011). Figure 2 in the appendix looks at a SWOT analysis for Tesla and how it affects the company.

2.1 Product & Pricing Analysis

Contrary to many sales models in the industry, Tesla sells and markets its cars directly to their customers through global networks, events and its stores. Tesla has three distinct models on the market each answering to different customer needs and wants:

Model
Characteristics
Roadster
Priced around $100,000 targeting higher-income consumers (first model)
Modern car with a sporty appearance created to attract consumers in the luxury sport vehicle market
Rival with Ferrari and Porsche
(Aden & Barray, 2008; Tesla, 2014)
Model S
Priced around $60,000
Competes in the luxury sedan market (Audi A6, Mercedes E-Class)
(Sun, 2011)
BlueStar
Priced around $30,000 targeting middle-income/families
Crossover/SUV to be launched in 2015
(Sun, 2011)

Tesla is currently operating in a market with high growth levels yet possesses relatively low market shares. Based on the above and using the growth share matrix, Tesla is in the growth phase in its Product Life Cycle and has room for improvement and development (see figure 3 in appendix).

Additionally, it is vital to notice that Tesla listens to consumer concerns. The firm has planned to expand its supercharger stations across Europe by the end of 2014 (see figure 4

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