Tesla Motors Saurav Sengupta Danielle Darisse Michael Easton Nicholas Lawrence Julian Saldana Amed Tovi Tesla commercial

Mission/Vision To 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.”

Sustainable Competitive Advantage 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 Ford Nissan #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 Focus Marketing and Products Objectives Have a vehicle that does not require gasoline Perform among the top premium car makers Green future More affordable in near future Target Market 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 Positioning 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

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