TESLA MOTORS Saurav Sengupta

Danielle Darisse

Michael Easton

Nicholas Lawrence

Julian Saldana

Amed Tovi

Tesla commercial

Mission/VisionTo produce a fully electric car, rather than a hybrid.

To create a better looking tomorrow by producing

efficient, zero emission electric vehicles without too

many compromises.

To switch from mine-and-burn hydrocarbon economy to a

solar electric economy

Goals- “Accelerate the world’s transition to electric mobility with a full range of increasingly affordable cars.”

Core Competencies and Sustainable Competitive Advantage

Advanced battery technology

Working with Toyota and Daimler

Top-Down vs. Bottom-up approach

- High performance sports cars to affordable family cars

helps avoid the competitive prices that other companies

are facing.

INDUSTRY ANALYSIS

Tesla produces high-end electric vehicles (EV)

Starting price of $89,000

Only produces fully electric cars

Highest safety rating of any car on the market

Working in collaboration with Toyota to make EVs (Toyota

RAV4 EV)

Also sell their batteries to competitors to foster innovation

COMPETITOR ANALYSIS

Electric Car industry, Hybrids

Main competition consists of Hybrid Vehicles, electric

and gasoline powered alternatives

Key competitors consist of General Motors, Ford,

Nissan

COMPETITOR ANALYSIS

General Motors• #1 sales leader with the hybrid Chevrolet Volt• Less charge, Lower rage and performance• Lower MSRP at $26,685

Ford • Secondary Sales leader with the hybrid Energi• More range than the Model S but as a hybrid;

emissions are much higher

Nissan• Rising competitor with the Nissan LEAF• 100% electric like the Tesla• Lower range but lower price point

  Helpful Harmful

Internal Strength:-Great expertise in the field of electric vehicles-Luxurious brand receiving attention for a combined sporty, luxury, eco-friendly approach

Weakness:-Priced much higher than competitors-Small start-up business with high production costs

External Opportunity:-only fully electric vehicle with high performance-increasingly environmentally conscious world with more demand for fuel efficient, environmentally friendly vehicles

Threats:-Hybrids are more affordable electric/combustion engine vehicles that are a safer bet for many consumers-Pricing strategy and order placement puts Tesla at a disadvantage for high demand orders

COMPANY ANALYSIS

Tesla is relatively new to the electric car market

Specifically concerned with making fully electric vehicles rather than Gas or Hybrids

Gives the Company the advantage of being focused on one unique type of product

Luxurious brand name

High performance while being fully electric

Priced much higher than competitors

Small start-up business with high production costs

Hybrids have similar performance for less

  Helpful Harmful

Internal Strength:

-Great expertise in the field of electric vehicles

-Luxurious brand receiving attention for a combined sporty, luxury, eco-friendly approach

Weakness:

-Priced much higher than competitors

-Small start-up business with high production costs

External Opportunity:

-only fully electric vehicle with high performance

-increasingly environmentally conscious world with more demand for fuel efficient, environmentally friendly vehicles

Threats:

-Hybrids are more affordable electric/combustion engine vehicles that are a safer bet for many consumers

-Pricing strategy and order placement puts Tesla at a disadvantage for high demand orders

Consumer Analysis The Premium electric car maker

Few competitors are • Nisan Leaf • Chevy Volt

Base Price of the Model S - $62,400 including a $7,500 tax credit

Appealing designs will get the attention of car enthusiasts

Doing well in Sales

Tesla sold 4,714 cars in 2013 (more than Porsche and Land Rover)

Consumer saves $4,248 annually based on 30k miles driven

Market-Product FocusMarketing and Products Objectives

Target Market

Have a vehicle that does not require gasoline

Perform among the top premium car makers

Green future

More affordable in near future

High-end car market (BMW, Audi, Porsche…)

Upper middle class

In future a family product

Consumers looking to go green

Market-Product Focus

Positioning

Tesla has one car to focus on

Performance (Power, driving range, Cosmetics)

Nissan Leaf miles VS. 250 miles with Model S

Tesla’s ionic design

Only electric car in its Price range

Least amount of CO2 emissions and unmatched efficiency

Category of premium cars and electric cars

The advantage of being green without compromising the luxury of

a quality

Trying to put itself in a position similar to the BMW “Ultimate

Driving Machine”

Product Strategy

Tesla has 2 current product lines, with a third in pipeline

Roadster- Electric Sports performance car• Comparable to Ferrari and Porsche in

performance• Energy efficiency better than a Prius

Model S- Electric Luxury Sedan• Zero emission• Performance comparable to top luxury sedans• Half the price of the Roadster

Tesla’s concept- Provide for the needs while keeping in mind the eco-friendly wants of the consumer

TESLA ROADSTER

TESLA MODEL S

PRICE STRATEGY

Roadster was their flagship model priced as luxury item with

limited availability which increased the product’s popularity

Justification of the price- to accumulate resources to further

the company goals and provide a more reasonably priced

product

Model S onwards priced similarly to other mainstream product

Later products aimed toward middle and lower-middle class

PROMOTION STRATEGY

Tesla operates with nearly no cost in paid advertising

• Compared to $25 million spent on advertising by

Nissan on Leaf EV

Much of the publicity generated through the use of

social media

Use of Tesla stores to promote their electric vehicles

• Using Apple stores method

CHANNEL STRATEGY

Tesla takes a unique approach in their distribution

strategy compared to other auto manufacturers.

Tesla has few dealerships therefore operates mainly

through their website and Tesla stores.

Tesla employs the pull strategy due to their inability to

meet current demand of orders

Customer orders are made-to-order and are delivered

directly to the consumer

QUESTIONS?