Is Tesla’s Fame Justified?
The fame of Tesla has spread around the world in recent years, a company originally from the United States and based in Silicon Valley.
Currently he is dedicated to the design and manufacture of electric cars as well known as the Tesla Roadster, which has been the protagonist of one of the latest eccentricities of the company’s founder, Elon Musk.
Beyond its own designs for the automotive market, Tesla is dedicated to the manufacture and distribution of all types of electric propulsion components, such as lithium-ion batteries. These are acquired by companies as recognized as Toyota.
Tesla’s master plan
For its great contributions to the world of electric vehicles, Tesla has managed to be the icon of sustainable mobility, since it offers vehicles that are a real and efficient alternative to those with a heat engine.
In the beginning, Tesla drew up his master plan, based on three main points :
- Its manufacturing chain would start with few units of cars at a high price. Thus was born the first Tesla model, a roadster that demonstrated the possibility of manufacturing a high-performance electric vehicle that was light, attractive and with little autonomy. In this way, Tesla dismantled the conceptions of the moment about electric vehicles, which were ugly and not very functional for customers.
- It would then build a model with a higher volume of units and a more competitive price. Hence the Tesla Model S and Tesla Model X were born.
- Finally, the company would already be integrated into the market, with a range of various vehicles that would meet the different needs of customers.
Brand strategy: Tesla’s reasons for fame
Tesla opened its first physical store in Los Angeles in 2008. Four years later, it already had 20 stores and workshops spread throughout North America, Europe and Asia.
In addition, it had a plan to open another 50 centers around the world in the coming years. The company has dedicated itself to locating its stores in the luxury sectors of the most important cities, sometimes combined with service workshops.
At its centers, customers deal directly with Tesla staff, not franchise workers. In addition, the company has made an effort to achieve good control of its inventory, its costs and the management of the guarantee of its products.
On the other hand, Tesla has the ownership of its entire commercial network, so that it avoids conflicts within its internal structure, which are common in dealerships of other brands.
According to the company’s own sales director, Tesla does not want to sell a car to people, but to make people want to buy a car from them. This different philosophy seeks to attract customers from the moment they enter the store, so that they become loyal consumers of the brand.
Tesla does not offer bargaining on the price of its vehicles, as prices are posted on the website for the entire country. In this way, the customer can focus on configuring it to their liking, according to their options and preferences.
In addition, the company does not have warehouses with the vehicles to sell, but rather manufactures and distributes them as customers confirm purchases. This allows the company to save large costs in warehousing.
The dark side of Tesla’s fame
As with all large companies, within Tesla not everything works perfectly, and there are problems or scandals that can affect its image, as in the case of Volkswagen’s dieselgate .
In 2016, the company went through a sales increase period of 22%, but its losses grew to 83%. The cause of this could be an unprofitable model within the company, which often did not meet its product delivery targets.
This is the most widespread criticism among Tesla customers. The reason is probably the method we have discussed to save storage costs, manufacturing the vehicle after the customer’s purchase confirmation.
Even so, Tesla’s fame can be justified by the rapid spread and integration it has achieved in the market.
In addition, the participation of its executives in projects as recognized as SpaceX’s space missions, contribute to improving the image of cutting-edge technology that accompanies the American company.
