Tesla strategic Management
A. Background
Tesla Motors, Inc. is an American company that designs, manufactures and sells electric cars and
electric vehicle power train components. Tesla Motors is a public company that trades on the
NASDAQ stock exchange under the symbol TSLA. Tesla was founded in 2003 by Elon Musk, Martin
Eberhard, Marc Tarpenning, JB Straubel, and Ian Wright. The headquarters of Tesla Motor located in
Palo Alto, California, USA. Tesla has served in many countries, such as United States, Canada, Japan,
Australia, New Zealand.
Tesla Motors first gained widespread attention by producing the Tesla Roadster, the first fully electric
sports car. The company s second vehicle was the Model S, a fully electric luxury sedan. Tesla also
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Price
Tesla produce new type of car with affordable price yet it still in high end user category. For example
the class as same level as BMW, Mercedes Benz, Audi, etc. By reducing the price to certain level
could encourage people to buy Tesla car in affordable price.
Perfect Timing
Tesla is not the innovator of electric car. The technology has already existed since 1959, but due to the
factor related to the timing, the company had to cease its operation. The factors involve timing such
as, low oil price, supplies of oil, global warming, people awareness regarding eco friendly or green
environment.
Differentiation Strategy of Tesla
Sales Marketing
Tesla use swinging by the fences strategy, which implement high risk business, however generate high
return. First, we target the high end customer by producing high class product. We produce the product
at the same level as Maserati, Porsche, etc. We need to make an high brand image for the brand,
especially the Tesla brand is still new to the automobile industry. Telsa has this different aspect from
other car nowadays, Tesla operated by battery or we could say Tesla produce electric car. After we got
quite some revenue to expand our market, we will target new segmentation of customer, which lower
than the above explanation. We produce a product with price range from US$ 50,000 US$ 75,000,
which has lower class than Maserati and Porshe. We use this marketing
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