About Tesla Motors

An American company called Tesla Motors was established in 2003 and specializes in the production of electric vehicles. The world’s first electric sports vehicle, the Tesla Roadster, was successfully produced and released, earning it praise on a global scale. Since then, the business has produced other vehicles like the Model S Sedan and the Model X, all of which have seen strong sales, elevating Tesla to the position of one of the world’s largest producers of electric automobiles. Tesla’s exceptional business model, which differs from the majority of competitors in the automotive sector, is largely responsible for the company’s resounding success. How Tesla Motors became successful is demonstrated through a description of the model.

The high-end consumer was Tesla’s initial target market. The company channeled the bulk of its original capital into developing high-end, luxury electric cars as is apparent from its flagship models, which cost between USD 109,000 to USD 150,000. Tesla’s plan was to utilize the revenues gained from the vehicles to produce affordable vehicles. The latest car, the Model S, is currently priced at 35,000 US dollars (Tesla Motors Incorporated, 2017).

Value

Tesla offers its consumers lower fuel costs as well as a decreased carbon footprint. Electric cars also provide consumers, with compelling desires to protect the environment, with an eco-friendly option. Furthermore, Tesla packages its vehicles in a luxury brand that exudes elite status that lures high-end consumers.

Channels

Unlike several other automobile companies, Tesla sells its vehicles directly to consumers. The interactive displays offered at Tesla galleries allow the shoppers to learn how the vehicles work (Tesla Motors Incorporated, 2017). Those who wish to buy the vehicle do so through the company’s website. In addition to offering the consumer lower prices by cutting the middleman, surveys conducted by consumer reports have revealed a 91% satisfaction rate from buyers.

Customer Relationships

The company deals directly with its clients via its official website. Tesla offers the consumers an intensive service relationship. The company creates a valet service that will pick up a damaged car, and once repairs and maintenance checks have been completed, the car is returned to the owner. The cars can also be repaired on a site.

Revenues

Tesla currently targets three different categories of clients. Initially, much of its revenue was earned from the upper class, high-end clients who purchased the Tesla Roadster at $109,000. The second and arguably the best selling model that the company has had was the Model S, sold at an average of $70,000. The software updates cost an estimated $9000 depending on the upgrade required. Customers pay for their purchases on the company’s official website.

Key Resources

Tesla offers consumers vehicles that are efficient and fast as well as fully electric. It appeals to environmentally conservative drivers due to their zero carbon emissions. The cars are also quite stylish as they are presented in luxurious designs that attract high-end customers. Tesla deals directly with the clients, therefore, eliminating the middleman as well as offering higher value and exemplary service.

Key Activities

The revenues generated by sales are utilized in the manufacture of the vehicles, making innovative technologies for the upgrades of old as well as upcoming models and the creation of future models. As per the release of its latest vehicle, Model 3, Tesla continuously works to develop low-priced batteries and electric drivetrains so as to make the vehicles more affordable to the public (Tesla Motors Incorporated, 2017). A significant amount of the revenue has also been utilized in the establishment of an international retail presence (Tesla Motors Incorporated, 2017). Tesla has also spent most of its revenue on the future plans, revealed by Musk as the mass production of affordable cars with solar power roofs, development of midsized and large electric vehicles such as vans and minibusses and a car sharing plan that would see drivers give out their cars when not in use.

Partnerships

Tesla has formed partnerships with several companies since its launch. The company has been in collaboration with Daimler AG since 2007 and together, they released the Model S sedan. Tesla has also worked with Mercedes-Benz in the construction of electric components for the Mercedes-Benz A-Class E-Cell vehicle, the first plug-in vehicle for the company. Tesla and Toyota became partners in 2010 when Toyota invested $50 million in electric car development, and Tesla purchased a part of the NUMMI processing plant for $42 million (Tesla Motors Incorporated, 2017). Tesla and Toyota have since released the Toyota RAV4 EV that was unveiled in 2010 and released in 2012. Tesla supplied the battery and powertrain components. Panasonic and Tesla started working together to develop a nickel-based lithium-ion battery for its vehicles. Panasonic invested $1 billion in research, development, and production of the next generation cells.

Costs

The company secures most of its current funding from the sales of its vehicles, the stock offering and the bond sales made to the government. The recurrent costs that are incurred by the company are manufacturing, payment of salaries, maintenance of real estate and servicing charges for the vehicles. The variable costs incurred are the research, development, and production of new technologies but the costs are usually covered by investments from partnerships.

Threstal Technologies

Threstal Technologies is an electric car manufacturing company that seeks to create affordable plug-in vehicles that are as efficient, powerful and stylish as the traditional fuel vehicles. To capture some of the market share presently dominated by Tesla, Threstal Technologies will require a new innovative approach which will bypass the pressing business challenges currently faced by Tesla. The business model is multiple-epicenter driven as it is based on different sections of the business that will promote overall growth. A description of the model will illustrate how this company might edge out Tesla Motors.

Customers

Threstal Technologies shall cater to the middle-class workers with an income of between $30,000 and $50,000 aged between 18 to 44 years old. The consumers are expected to be tech-savvy and environmentally conscious or at least economic on the amount of money spent on gas. Threstal Technologies shall provide affordable but highly functioning electric vehicles for lower-end clients.

Value

Threstal Technologies offers potential customers the first affordable and fully functional electric vehicle. Purchasing the car will eliminate accumulating fuel costs as well as the environmental impact caused by the dirty energy source. The company will also develop flexible payment plans for vehicle purchase which can be partially made via a trade-in with the previous vehicle owned.

Channels

Threstal Technologies will take a cue from Tesla and deal with the consumers directly. The company’s vehicles shall only be made available in Threstal Technologies showrooms. Potential customers can view the various cars and order the desired model from the official website.

Consumer Relations

Threstal Technologies shall aim to cultivate a direct relationship with its consumers.

As such, the company will be able to resolve any issue with its products and be at the consumer’s disposal whenever necessary. The company will also offer service and maintenance checks as part of the purchase for three years.

Revenues

The bulk of Threstal Technology’s revenue shall be sourced from the sale of its vehicle. A basic Threstal vehicle will cost $25,000. The company is expected to sell at least 3000 units in the U.S. during its first year of operations.

Key Resources

Threstal Technologies provides affordable and efficient electric vehicles. It is the car of an environmentalist concerned with global warming. Direct dealing with consumers is an added advantage, as is the flexible payment plan that is inclusive of a trade with the previously owned vehicle.

Key Activities

Company funds will be used for the manufacture of the vehicles and the creation of future models. Threstal will attempt to create more models as per the demands of the market. The company shall also invest in the establishment of manufacturing plants for the mass production of the vehicles.

Partnerships

Threstal Technologies shall benefit profoundly from a partnership with an electric automobile giant such as Tesla. Together, the companies can collaborate to create novel electric vehicles that might revolutionize the automobile industry. Partnerships are also essential for additional funding.

Costs

Threstal will secure its funding from the sales of its vehicles. The company shall also attempt to acquire government subsidies or loans to supplement the payment plan. A resale of the cars received as trade-ins will also bring in revenue. The recurrent costs incurred will be manufacturing, payment of salaries and servicing charges for the vehicles.

Reference

Tesla Motors Incorporated. (2017). Tesla | Premium Electric Sedans and SUVs. Retrieved on January 27, 2017 from https://www.tesla.com/