TESLA: A gimmicky initiative to a new normal
The year 2020 had given rise to the philosophy of ‘the new normal’, a practice which was once considered as something unusual in the chapters of past has become an urgency of today. An instance of this philosophy can be found on the NASDAQ stock exchange, when the stock prices of Tesla surged aggressively. Perhaps, this surge can be attributed to people accepting the ‘new normal’ in the automotive industry which once showed resilience to change like a conservative grandpa. However the main identity of this brand only reveals a paradigm shift in propulsion technology of automobiles, but Tesla is in business for not only making Battery-powered Electric Vehicles (BEVs). By revolutionizing the very definition of this grandpa sort of industry, Elon Musk(the chairman of Tesla) made sure that his company is not just an electric version of the conventional auto makers. Here's a quick look at three different strategies that makes Tesla a very off beat automaker.
1. Redefining the brand image
Usually when new technologies arrive it is quite expensive and out of reach for mainstream folks. Tesla used this technique to gain traction as a high end electric carmaker by launching a sports car, the Tesla Roadster which was priced in excess of $100,000. This made sure that only the mavericks, who have ventured out of the beaten path to make a success can drive this technology home. Once those mavericks were comfortable and Tesla gained some traction as a brand, it launched the Model S and Model 3 which was for the masses priced around $70,000 and $40,000 respectively. This approach to enter into mass produced vehicles was totally unconventional as the traditional automakers were not quite flexible in terms of their brand image as they would strictly adhere to mass production & marketing of their cars.
2. Unique sales & service strategies
Unlike traditional automakers which prefer to sell their products only through franchise dealer networks, Tesla markets and sells its models mainly through a network of company owned high end stores, online or through corporate events. Tesla also offers a plethora of customization options for its models and using a configurator available on its website, customers implement the exact mod that they desire to invest in. Also the customers interact with highly trained and knowledgeable salesperson creating an unique buying experience.
Unlike investing in an IC (Internal Combustion) engine vehicle which has got millions of mechanical parts which require timely maintenance, EVs do not ask to invest so heavily in servicing. Also Tesla models are internet cars, so they would receive software updates like a smart phone and would be able detect faults on its own. With that data, it will automatically request its owners to pull over its service stations. The company plans to launch mobile service stations for its customers residing in remote locations.
3. Reinventing the automobile
Traditionally, cars were mechanical machines capable of converting the calorific value of gasoline to a propulsion technology. This Palo Alto based company has tried to alter the whole definition of the automobile. Elon Musk has channelized his efforts to redefine automobiles as technology on wheels. From big tough screens and internet connectivity to autonomous driving technology, Tesla made sure that they are designing the present by visualizing the future.
Time to Conclude:
In the 1930s & 40s, the automotive industry was as revolutionary as the internet or electronics industry is today. But with time auto industry became so bulky and complex that revolution was next to obsolete and the auto giants had only to look after their turnover and topline. However, with global climate issues and depletion of fossil fuels, it has become an urgency of today to migrate to a new normal. The efforts of Elon Musk’s company can be summarized as to give a new life to this old gen industry. Tesla has not only been involved in nurturing new propulsion technologies but also changing the whole dynamics of the auto industry. From in house development of propulsion technology to partnering with tech companies like Panasonic, Tesla has become a pioneer in defining a 21st century automobile. Autonomous driving, Electric powertrain, fast charging network and internet connected car with AI have become a common affair with automobiles, translating sci-fi to reality. Over & Out.