Tesla Company Marketing Essay 2022

Running Head: MARKETING
TESLA COMPANY
Marketing
Essay
Student Name
[Pick the date]

Tesla motor is considered as one of the biggest American automotive company in the
automobile sector. It is also known for designing and manufacturing of luxury electric operated
vehicle power train equipment and batteries. This company is also registered in NASDAQ trade
center under the name of TSLA. 2013 was the first year in Tesla Company in which they have
shown profit in the market (Greiner & Ivory Sherman, 2019). This company was able to gain
attention of the business world when they introduced Tesla Roadster which was the first full-
electric vehicle. After gaining success, this company moved to their other project which is
known as model S. In this model, company tries to introduce luxury features in their electric car
and they are further moving to new concept a crossover in the form of model X.
In 2007, Eberhard founder of this company has resigned from his CEO post and preferred
to join as advisory board of the organization. He left the company but still remained shareholder
of this organization. Another change happened, when Vice president of electrical engineering
development left the company. In this way Musk obtained post of CEO in the company, this
announcement helped them to raise $226 million. In year 2012, Tesla Company has announced
that they are going to stop their roadster platform and will focus on Model S sedan which was
much admired by various automotive makers because of its high performance and pattern. This
model has three battery variant available which provides them approx. range of 235 miles
(Schreiber & Gregersen, 2019). In addition to this, battery options which offer high performance
provide acceleration from 0 to 60 miles within 4 seconds along with top speed of 130 miles per
hour. Frame pattern of Model S was very different from Roadster because battery was placed
underneath the floor instead of placing it in front like Roadster. This helps in creating more space
with effective handling due to a low center of gravity. In 2014, they focused their interest in
semiautonomous driving in model S.
This concept helped the company to gain the sale of over 100,000 units in Dec. 2015
which is three years after their launch. Companies' bestselling product was Model S which was
one of the unique products which offer plug-in facility in the car. Due to this innovative feature,
this product was able to gain second range in the bestselling plug-in car just one position below
Nissan Leaf. Although their main focus was mainly related to cars manufacturing but still they
have entered in the home and office equipment in which they install batteries and high powered
charges in European region, Asian region and also in North American region (WU, 2019). They
have also introduced their charger program in commercial business such as shops, restaurants
and other related potential customers. The founder of Tesla Company, Elon Musk aim was to

build an independent company which was focused on designing and manufacturing fully electric
operated car to the potential buyer within affordable price. This strategy helped this company to
gain the attention of those people who believes in car hybrid system.
Tesla Company mainly operates two types of strategies. One is genetic and other is an
intensive approach. In generic strategy, Tesla Company is mainly focused on generating
differentiation in order to create a competitive advantage over other car manufacturing
companies in the market. Tesla has adopted innovative environment-friendly technology while
most of the car manufacturing companies are focused on the internal combustion engine
(Kompalla et al., 2017). With the help of high-end electric vehicle development, this company
tried to create a new market place in the existing business world. This strategy offered the most
innovative product to the potential customers which are focused towards environment protection.
At present due to decline in production cost this company has shifted its strategy towards global
differentiation by offering luxury comfort to their high-end models within affordable price for
the target audience.
Tesla company strategy is mainly focused on specific technological product life cycle. In
addition, their aim was to enter into the electrically operated luxury car market in which potential
customer is willing to pay for innovative technology. After attaining maturity level this company
tries to enter a larger market in which competition is high due to low price rate (Subramanian, K.
P., & Balanagarajan, 2018). Tesla has adopted three-step strategies under which battery and
electric drivetrain technology is developed for each model whose payment is associated with
sales of previous products such as Model 3 and Model S. These models are mainly connected
with Roadster platform (Khan et al., 2018). In this strategy, company was focusing on making
Tesla Roadster with high price but in low volume. While model S is linked with the middle range
price with medium volume. Tesla Company third generation is mainly associated with low price
and low volume.
In intensive strategy, company adopted four-step strategies in which they first tried to
penetrate in the market which is growing intensively. In this, Tesla company has adopted
aggressive marketing related to electric cars which have increased their sales in United States.
This helped Tesla company in increasing its market shares in the present business market with
the help their pollution-free electric vehicle models (Teece, 2018). Then this company entered
into product development phase in which they came up with a new model in order to set up new