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Tesla: The High Tech, Electric Vehicle Automaker

1059 words - 4 pages

Tesla is to be considered as a new high tech automaker that produces and sells top of its class electric vehicles and power trains. Utilizing its competitive advantage the automaker has positioned itself through its technological leadership and exploiting its competitive differentiation. That is to deliver high rated environmentally dependable vehicles with the benefits offered by most premium cars already in the market and beyond. There is no doubt this segment leading technology will continue to evolve, but most importantly, the list of patents the company holds will hedge against new entrants and imitators, enabling Tesla, domination of the market in the short term while the future of the EV segment is define.
It is important to mention as well the expertise the company has been able to create, and the culture of innovation it aims to sustain. Since inception, the strategic positioning of its company in an environment that feeds of innovation has proven to attract many necessary and ambitious key players that cooperate both externally and internally to the company. The best example, Tesla teamed with Lotus to manufacture the Tesla Roadster, a vehicle that successfully tackled unlike predecessors and current competitors, range and performance.
The company is aware of the threat of other company’s intentions to lunch hybrid or electrical vehicles, most likely priced for mass distribution, creating a very competitive environment for years to come. At this point the company is already competing not only with overall automobile market but with already established marketed “green “cars, such as hybrid vehicles and plug-in hybrids. Up until the end of 2010 the company has opened exclusive stores in major metropolitan areas in the US, Japan and Europe. Compared to competitors like BMW and Audi, the company’s approach to retail can be compared to that of Apple Inc. which in turn has differentiate the company as being stylish, and most of all innovative.
Tesla’s overall goal is to mass produce, expand its selection and launch its products mainstream. At the moment the company chose to target early adopters to gain a first mover advantage in the lithium-ion technology for passenger vehicles. Although the price for the Tesla Roadster aimed at the early adopters is reasonable high, the second model aimed at production for 2012, the price for the Model S Sedan is roughly half of the previous mentioned. Cascading down to less a less expensive vehicle in the near future, a third vehicle will be available to consumers of a lower price segment. In order to make this possible, Tesla has approached the market from distinct perspectives.
As previously mentioned, its approach to retail sales through selected locations for company owned stores and a website that can maintain sales creates exclusivity for the costumer. Its patented technology allows them to sell its power train for EV to companies such as Toyota, creating relations and bridge for future...

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