Tesla Company Analysis Essays Example
With many states not allowing direct sales of cars, Tesla will have to look for alternative mean to sell its products in the American car market. It will have to sell them at retail locations such as malls and online selling. The company is also facing court battle with some states that have banned the direct sales of its cars such AZ and WV (Richard, 2014). This proves to be a major handle to the company since it may require enactment of such law by the congress.
Tesla is a first mover in the market despite being there in the last three years. There is high level of uncertainty since the company does not know how customers will react to their products (Alspach, 2014). Will they easily accept and adapt to them or will they reject these unique products given that they are used to fuel car for many years (Sommer, 2014). The company will also not be sure how it will build loyalty of the customers even after winning them from traditional fuel driven vehicles.
At the moment the company has very few charging station in the US market. This means that there will be a delayed production of new vehicles in order to balance the quantity produced and the required infrastructures such as superchargers (Bedigin, 2014). This will be worse given that the company is expecting the demand of its products to increase in this year compared to the previous years. This may requires the company to outsource super charger from other battering manufacturing companies though at a cost to its profit margin (Rodriguez, 2014).
Alspach, K.(2014). Can Gas vehicles Survie Elon Musk’s Next Announcement? Bostlnno12/26/14. Streetwise Media. Retrieved http://nuzzel.com/story/12262014/bostinno.streetwise/can_gas_vehicles_survive_elon_musks_next_announcement
Bedigin, L.( 2014). The 3 Biggest Challenges Facing Tesla’s Future Growth. Benzinga March 7, 2014. Retrieved http://www.benzinga.com/trading-ideas/short-ideas/14/03/4374622/the-3-biggest-challenges-facing-teslas-future-growth?awesm=trcr.co_q1iz
Richard, M.G.(2014). In Which U.S. states can Tesla sell its electric cars? Treehuger. Minn Holding Company, LLC. Retrieved www.treehugger.com/cars/which-us-states-can-tesla-sell-its-electric-cars
Rodriguez, J. M. (2014). 29,000 Tesla Model S Chargers Recalled Die to Fire Hazard. Inhabitat.com 1/15/14. Retrieved inhabitat.com/29000-tesla-model-s-chargers-recalled-due-to-fire-hazard/
Sommer, C.(2014). The ‘CVS Effect’ in Action: SAP, Starbucks, Tesla Show How to Lead by Sharing Information. Sustainable Brands: The Bridge to Better Brands June 23, 2014. Suswtainable Life Media. Retrieved http://www.sustainablebrands.com/news_and_views/brand_innovation/claire_sommer/cvs_effect_action_sap_starbucks_tesla_show_how_lead_sh