Tesla Business Model

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3) Pick one business model used by companies in your industry and analyze systematically the elements of this business model using the analytic framework introduced in this course. Tesla has established themselves as one of the leaders in the Electronic Vehicle market and a leader innovation. In order to furder their control of the EV market. Its strategic plan followed 3 main steps: 1) Changing people’s perception about electric cars by launching an ultra high-end sports car, 2) Launching high-end sedan to increase market presence. 3) And launching an economy electric car to target the masses. Including their strategies for growth, namely how they opened their patents to the world so as to become mass produces of a component (electric batteries) so as to achieve economies of scale and how they squandered away their first mover advantage with competition fast catching up to them. Tesla Motors believe that electric cars should not be perceived as a sacrificial mode of transportation. They has brought the best of both automotive and technological worlds together by permananently etching the image of electric cars being a step backwards in performance, efficiency and design. Tesla Motors key is the 100% electric power terrain, which not only propels us in the present, but simultaneously establishes a strong foundation for the future. They have set out to forever alter the current perceptions of electric vehicles, as well as making electronic cars a viable alternative. Tesla has produced a car that is finally, beautiful and exciting to drive along with being the most efficiently produced automobile on the planet. Core Value: - A Silicon Valley approach means they move fast and constantly innovate. - Tesla makes the best electric cars and electric power trains in the world. Their technology offers the most efficient path to sustainable energy future; no

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