Tesla Company: Product Category and Market Segmentation

Tesla Company 1
TESLA COMPANY; PRODUCT CATEGORY AND MARKET SEGMENTATION
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Tesla Company 2
Tesla cars are mostly used in developed countries (Loureiro et al, 2017). Tesla Company
sold the most cars in the United States, in California especially in 2017, where 4.8% of the units
produced were sold. European countries bought 1.74% which was an improvement from 2016
when Europe consumed 1.3% of the Tesla products. The electric cars available in the market are
divided into plug-in electric vehicles which are more preferred because of their flexibility in the
sense that they can use fuel too. Tesla should, therefore, capitalize in the manufacture of more
PHEV vehicles to capture more of the global electric cars’ market. Customers are segmented in
lines of those that prefer battery electric cars since they prefer to use cars that do not require
petroleum fuel only that the current Tesla products are not entirely reliable especially in places
away from urban developments since the customers are afraid of finding themselves stranded
while on cruise with the prestigious machines. Tesla Company should therefore improve the
efficiency of the cars that are currently available in the market to satisfy the needs for all
consumers some of whom may prefer longer-lasting batteries in case they cover long distances
on a daily basis.
Tesla Company manufactures personal cars at the expense of market segment s
such as the public transport sector (Vlasic and Boudette, 2016). This does not satisfy the demand
for electric vehicles, especially in public transport in countries such as China that facilitate
transport in their cities using electric buses and trains for intercity transport. The consumers in
the public transport sector therefore by their products from other companies and this is one of the
market segments that Tesla should target, study, plan for and manufacture more efficient electric
vehicles for public transport than the ones that are currently in the market. Most of the people
that buy electric cars lead luxurious lives and the main aim of buying these cars is to ensure
boost the effectiveness and efficiency of their transport needs in term of speed, comfort, and