A Case Study on Tesla

 

Tesla under Musk

Tesla has popularized, revolutionized, and enhanced the electric car since its inception in 2003. Tesla Motors was found to create an electric sports car. In 2008, Tesla released its first vehicle, Roadster, a completely electric car that could travel 245 miles on a single charge. In 2010, shortly after this musk took over as CEO.

As a result of Silicon Valley-style “techpreneurship”, the company was able to move faster, perform more effectively, and develop fresh concepts in the fields of sustainable, mobility, and automotive technologies. As a result of Musk's method of operation, PayPal became a widely deployed and secure payment platform that disrupted the e-commerce market in 1998. His contribution to the launch of Tesla in 2004 amounted to $6.3 million after making approximately $180 million as a cofounder of PayPal. The startup's bold business plan consisted of three steps. 

 

•  To demonstrate both the feasibility and coolness of electric vehicles by building a high-end, high-performance sports car. 
• Launch a luxury sedan to compete with high-end brands like BMW and Mercedes. 
• The third step is to mass-produce hundreds of thousands of low-cost electric cars.

Elon Musk presumed that the automobile industry had made an excessive financial and psychological investment in the engine so, switching to electric vehicles will have a transformative effect because the masses are reliant on oil to produce transportation fuel since the invention of the combustion engine. Tesla faces a lack of funding, with a $20 million loss, Musk quickly realized what needed to be fixed: to make the Roadster cost-effective and build packs of batteries for Daimler, the revenue would then be used to stay alive long enough to obtain federal loans and unveil the Model S.

Tesla was kept afloat by emergency funds, and things unraveled exactly as Musk predicted. It took Daimler until January 2009 to feel convinced enough to purchase 1,000 Smart battery packs for $40 million. Then, in May of that year, Daimler acquired nearly 10% of Tesla, giving Tesla an appraisal of more than $500 million.

Tesla- powerful Brand Strategy

·        Having a Vision

Tesla needed to establish an entire ecosystem, including energy solutions, to enable electric cars to compete in terms of convenience. Elon modified the vision in 2016 with 'Master Plan Part Deux. The advantage of sharing this vision with the rest of the world was to give the brand an objective and a personality. and encourage the public to follow along.

·        Engaging media presence

How did Tesla become the most valuable automobile manufacturer? Tesla develops new and innovative products, but Elon Musk is largely responsible for the company's marketing strategy. Tesla used a variety of marketing strategies, with Tesla Car owners offering recommendations for enhancements. This shows that they actively listen and are sincere enough to take criticism. It improves customer satisfaction and brand loyalty. Much of its success can be attributed to Musk's use of social media. He's interesting, posts a variety of content, and responds quickly. He also employs cross-promotional tactics.

·        Quick Solutions

A new customer is frequently stimulated to choose a dealer for repair as part of the purchase of a car. Tesla increased its services business. Tesla car owners would have to have their vehicles serviced by Tesla Motors. Tesla Rangers is a mobile service team that visits Tesla owners at their homes. This strategy is another way to attract prospective consumers.

      Growing the Business

Tesla Motors is a gamble on new technology. The business does not just produce cars but it also builds the infrastructure necessary for its operation. In the scenario of Tesla, this entails establishing a system of superchargers, battery swap stations, and depots.

                           

 Tesla's business model

·        Tesla took an unconventional approach to market entry. Concentrating on developing a compelling car that will create demand for electric vehicles.

·        Tesla's business model is built on three pillars: selling, repairing, and charging electric cars

·        Tesla sells straight to the customer. It has built a worldwide presence of company-owned showrooms, a significant proportion of which are in cities. Tesla has also used the Web for sales, enabling users to customize and buy a Tesla online.

·        Tesla has established its own Global Supercharger network. The goal is to accelerate the adoption of electric vehicles by making them more affordable, and drivers will be able to long charge their Tesla vehicles in 15 minutes.

·        Tesla has one distinguishing feature: Its vehicles compete in the Long Range EV automotive market, This car's pricing is within the range of exotic cars. This makes it more difficult for other automakers to compete as they are unable to afford to risk losing their most profitable segment by developing a luxury vehicle that fails they might risk undermining sales of their high-end ICE vehicles. S far, automakers allowed Tesla to spearhead the boost to increase the share of alternative cars in the overall car market.

 

 How has Tesla changed the auto Industry?

 Tesla outbroke the norms of 100 years old auto-industry by generating sustainable mobility, generating fresh ideas. Musk's concept is to build a high-speed mass transit system that is immune to weather, uses less energy and retains the majority of what it consumes, and travels twice as fast as today's commercial planes.

 Technical Advancement 

The technical aspects of the specifications of Tesla cars are remarkable. The Tesla Model S is distinct from any other vehicle on the road.

Chi Mei Optoelectronics supplied the 17-inch screen.

Processor NVIDIA Tegra 3.

Fully digital 12.3-inch instrument cluster.

 Manufacturing 

The organization decided to alter its distribution network and borrow from digital manufacturing services. Tesla worked with a leading EMS supplier to create the Model S's central infotainment system, instrument cluster, and various other mechanisms.

 Speedy development

A smartphone device's cycle time is often six months or less. Tesla has a competitive edge over auto sector rivals in design innovation, not only to build its vision of movement in Silicon Valley but also to hire workers from several of the world's top technology companies to create and construct the car.

Tesla has one significant aspect: its cars fight in the Long Range EV auto sector. The price of this car is comparable to that of exotic cars. This makes it more challenging for other automakers to compete because they cannot manage to fear losing their most lucrative segment by constructing a luxury vehicle that fails, as this would jeopardize sales of their elevated ICE vehicles. So far, automakers have allowed Tesla to lead the charge in increasing the share of substitute cars in the overarching car market.

 

Tesla in 10 years.

 Following CEO Elon Musk's survey on if he should sell 10 per cent of his Tesla stock. Long-term Tesla stock investors have witnessed the company's equity fluctuate hugely in response to daily data. The company's founder will retain a large portion of his previous stake. According to a recent case study analysis, Tesla's revenue increased 57percentage year on year in the third quarter. Tesla management stated that the company anticipates developing its EV shipments at a 50% annual rate, and ALSO the company could be supplying 28 million cars annually in 10 years. After 5 years, or until 2030, growth shrinks to an annual average of 20%.