Tesla Motors in the Electric Vehicle Market

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At the beginning of the 21st century, there is an increasing interest in issues related to hydrocarbon fuel vehicles, such as environmental damage due to emissions, the sustainability of existing hydrocarbons, concern for electric vehicles and other alternative fuel vehicles. Increase. It is based on improvement of traffic infrastructure and electric vehicle technology. Tesla was named after Tesla Motors in July 2003 as businessman Martin Eberhard and Mark Turnpenings. The company’s name is Nicola Tesla, physicist. In the beginning of Series, A, Tesla Motors joined Ela Musk, L. Straubel, and Ian Wright, all of whom were able to call the company’s founders. Tesla Motor is a Tesla Motor Company, a consumer technology independent manufacturer that offers electric cars with cheaper prices at low prices.

Tesla motors tesla was named in February 2017. In 2016, Tesla bought Solar City and expanded its product portfolio including solar panels, solar roof tiles, and battery storage. Batteries complement the power generation characteristics of solar panels charged only during the sun shining day. In order to supply on demand power consumers are familiar with, it is necessary to store electricity on a cloudy day or night. Storage of solar cells and batteries is not only suitable for developed countries. Tesla battery is designed for home use at home combined with a solar panel. The solar panels will be stored in a battery box and will not return to the grid when producing more electricity than the house.

If the stoves do not have enough power, they buy electricity from the power grid. Tesla Powerwall is a household battery that can power your home by charging itself through a solar panel and supplying backup power or by supplying power during a power outage. Since the batter stores solar energy at peak times, individuals can gain excessive energy and then profit from it, otherwise energy will be sold and purchased by electric utilities during the day. The vision statement of Tesla, according to its CEO Elon Musk, is “to accelerate the advent of sustainable transport by bringing compelling mass market electric cars to market as soon as possible” (Musk, 2013).

More particularly, the company is investing deeply on constructing a worldwide charging net in order to support the of electric vehicles brands, emerging battery technology in support for electric vehicles to be able to have a long range and short charging time. The union with SolarCity also striked the rising objective of the company to thrust for an electric future. Tesla has used the strategy beginning from the top of the market and working their way to the lower end. Elon explained this strategy himself saying the strategy is “Build sports car. Use that money to build an affordable car. Use that money to build an even more affordable car” (Musk, 2006).

By targeting the wealthy early adopters first, this strategy alleviates the high cost and the absence of involvement for new companies such as Tesla. Customers as such are probable to afford such expensive sports cars with a higher boundary which are more forbearing to defects. Resulting in positive reviews for Tesla. In order to Tesla follows a global strategy, involving aspiration, placing, proficiencies in building and corporation which assess in considering choices, sustainability and organization for a driven business system.

By Tesla focusing on the electric cars market, their main competitors are among companies whom also produce electric vehicles. Tesla operates by the business for development, manufacture and market for electric vehicles and energy storage systems. Tesla’s market-driven aspirations assess the company by developing in foreign countries for increasing global sales. The company has set up a premium pricing strategy, where prices are high but evoke the uniqueness of the offer in order for customer satisfaction and optimizing revenues. The company depends on marketing and selling methods in its stores for promotion of its products.

Tesla has implemented a pure global strategy for the cars, value, distribution and all the other fundamentals for a marketing strategy in order to remain level during the development of internalization. The concept and mission respected by the company’s value “to create the most compelling car company of the 21st century by driving the world’s transition to electric vehicles” and “to accelerate the world’s transition to sustainable energy”, while the long-term objectives are global expansion, strategic partnerships, technological innovation and shift from ‘High Price Low Volume’ to ‘Low Price High Volume’.

Following through their plan, their Roadster sports car values for around $100,000 intended for the high-end market. Then by working their way down the Model X and Model S starting from $79,500-$74,500. Model 3 was then manufactured for around $35,000 for the affordable market.

Tesla currently dominates the electric vehicle market and has made an impression towards the automobile industry. With the continuation for an increase in recognition and revenue the extreme amounts of total accountabilities and operational costs are significant matters in preventing the company’s net income. It is important for Tesla’s recognition in its current financial situation and make the changes needed for future profit. Shareholder and debt financers will lose assurance in the company if Tesla remains to maintain net income losses leading for other competitors by contending to earn market share.

Cite this paper

Tesla Motors in the Electric Vehicle Market. (2021, Aug 24). Retrieved from https://samploon.com/tesla-motors-in-the-electric-vehicle-market/



What is the market share of Tesla in electric vehicles?
Tesla's market share in electric vehicles was 2.2% in 2019. This is expected to rise to 20% by 2025.
Who dominates the electric vehicle market?
1. Tesla is the clear leader in the electric vehicle market. 2. Other companies are trying to catch up, but Tesla's dominance is clear.
Who is Tesla's biggest electric competitor?
Chevrolet Bolt and the Nissan Leaf are Tesla's biggest electric competitors.
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