Tesla Motors-EV’s automobile Company

With a futuristic innovation, Tesla is all set to drive the world’s transition to electric vehicles. Most of the companies are using electricity to improve the gas mileage, but Tesla Motors achieved success in United State and other countries with Electric vehicles without any other source of powertrain. Tesla model ranges from full sized crossover, luxury sedan to sports car with starting price of $35000. Tesla offer pure electric propulsion technology, rages beyond 200 miles for all the models. Tesla initially introduced a sports car Tesla Roadster, high-end product and subsequently moving to more affordable family cars. Tesla Motors did not only focussed on selling their own vehicles but also sell powertrain components to other automakers.

Popularity of Tesla Motors in last 5 months:

Based on the number of visits on Tesla Motors website, popularity has grown more than 350% from 51.5 Lakh visits in December 2015 to 189 Lakh visits in April 2016. Total visits on Tesla Motor website on a span on 5 months are 469 Lakh. Average page view on the website is 5.51 pages and average bounce rate (Percentage of visitors who leave the page without viewing the second page) is 37.24%, which is considered to be very good from the average acceptable bounce rate of around 50%-55.Average time of visit on the website is 4 minutes and 17 second compared to good time of 2 minutes which depicts that the credibly of information provided by the website is highly informative and interest-worthy.

Tesla Motor is also engaging large audience through social media and is very active on number of social media platforms. 8.18% of total traffic comes from social media, out of which 39.76% of traffic from social media comes from Facebook followed by 27.57% from Twitter, 10.59% from Reddit, 9.22% from YouTube, 8.67% from LinkedIn and many more. Tesla Motors did not leave any chance to capture the market and Tesla Motors use social media platform to deepen the engagement with wider audience and to promote the brand.

Electric Vehicles in United States:

CANADA 4.56%
JAPAN 2.60%

Major portion of website comes from United State clearly states that Tesla Motors had its hand in a right way on the United State market, more focussed in California state or nearby area. A survey conducted by the Union of Concerned Scientists in April 2016 shows that in 9 states including Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, Vermont, New Jersey, New York, and Pennsylvania, 35% of drivers are interested in buying or leasing their next vehicle as an electric vehicle.

Business Strategy:

Tesla Motors has a competitive advantage over others as they introduced not only charging stations but free of cost, super-charging stations that can charge the Tesla car around 80% within 40 minutes. Low cost of Tesla’s battery pack allows Tesla to sell Model S at a very competitive price with a range of around 300 miles, which other manufactures like Chevrolet are not able to achieve. Tesla Motors is the first successful automobile start-up to provide pure electric performance car (Tesla Roadster) and pure electric premium car (Tesla Model S).

To sell powertrains to other manufactures, Tesla had partnership with several other manufacturers:

 Mercedes-Benz 2008

Tesla begins development of battery pack and charger.

Daimler agrees to purchase 1500 Batley packs and chargers to support European trial

2009 Blackstar Investco (an affiliate of Daimler) purchases 19,901,290 share of series E convertible preferred stock for $50M $50M
2010 Agreement for Tesla to develop and manufacture battery packs and chargers for Daimler’s A-Class vehicles  $14.1M
 Toyota 2010

Toyota purchases 2,941,176 common shares in private placement.

Tesla to develop powertrain RAV4 prototype

Tesla to develop validated powertrain system  including battery, power electronic module, gear box and software

 Panasonic 2008 Tesla uses Panasonic battery cells in its advanced battery packs and has collaborated with Panasonic in the development of the next-generation battery cell for electric vehicles
2010 Panasonic purchases 1,418,573 common shares in private placement  $30M

Business strategy:

Tesla motors entered into the world of automobile industry with high-end performance car Tesla Roadster with base price of $109,000. They matured the brand name in the US market with the pure electric performance car, later they moved on lower segment cars Model S at a base price of $57,400 and Model 3 at base price of $35,000. Tesla sell cars directly to the customer without any agents or independently owned dealerships. Tesla showroom acts as an information stores where customers can get all the information about Tesla Motors and Tesla cars.


GM Chevrolet Bolt is the biggest competitor of Tesla as GM Bolt is the only car offering pure electric vehicle with range of more than 200miles. Tesla still has an edge in pure electric vehicles as Tesla is providing facility of free of cost supercharging station in US, Europe and in some parts of Asia. Tesla has 641 supercharger stations with 3844 superchargers in North America, Europe and Asia, to make sure no Tesla car goes out of charge. Tesla customers can locate all the nearby charging stations on the informative display and can track the charging of their vehicle through Tesla App.


With continuous growth of Tesla Motors, they are trying to capture more share of automobile market by introducing more and more free supercharging stations. Luxury cars at low running cost, zero-emission vehicle and availability of supercharging stations that can charge around 80% within 40minutes, with no wait-time. Tesla’s strategy of introducing high-end performance car as their first vehicle helps to grab the attention of large population. Tesla motors should target the countries with huge population. Availability of number of supercharging stations is the major factor behind the growth of Tesla Motors in a span of 13-14 years.

Data source: www.similarweb.com

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