Tesla Pushes Leases to Seed Hailing Business

Running head: MARKETING ASSIGNMENT
Marketing Assignment
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MARKETINGASSIGNMENT
1. What are the key issues illustrated in the article?
In Australian Financial Review an article titled “Tesla pushes leases to seed
hailing business” was published on 17th April, 2019. The article talks about the
marketing policy Tesla has taken to lease electric sedans of Model 3 first time in their
history. They have made some of these models available for lease the base model that
is priced at $35,000. This policy is not like any other standard auto lease where the
person taking the lease can but the vehicle after the end of the lease term. The lease
Tesla is offering is available against a down payment and a competitive sum of
monthly payments. They are planning to use these leased vehicles in their door-to-
door car service that they will be introducing later on. The CEO of Tesla, Elon Mask
has pitched the idea of Tesla’s new car hailing services several times in the last few
years but no details were shared regarding that. Statistics suggest that luxury car
consumers opt for leased cars in more than 50 percent of the cases rather than buying
the cars (Australian Financial Review, 2019). Earlier the Model 3 base model was
only available through online ordering, that too, became available online not very
long ago. This Model 3 is one of the most affordable cars that Tesla has ever made.
Now, Musk has changed the strategy and made the car available only through Tesla
store. This standard model would not have some features like heated seats as well as
streaming music services and many such though they are upgradable.
2. Who are the important stakeholders?
The stakeholders of Tesla include the board of directors, the investors, the
creditors, the employees, the shareholders, the suppliers and the unions related to the
production. The important stakeholders in these cases are the investors, the suppliers
and the directors. Other important stakeholders are the shareowners of the