Essay on Tesla Development And Innovation Of The Electric Car
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 1).
Tesla Target Market
For Tesla to continue to grow into the future they recognize that they need to expand their target market of customers. 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…