A new nugget in the world of the Automobile, Tesla Motors is also respected in the Digital sector. A company that fascinates and inspires today in all sectors, startups, and multinationals. To understand its success here is the list of 6 key factors behind Teslas’ success, we meet with Charles Delaville, Tesla Motors’ spokesperson in France.
If there is a sector in which it seemed complicated and daring to start up, it is the automotive industry. Some fifteen giants have been sharing the production of tens of millions of vehicles for decades, leaving little room for an adventurous entrepreneur.
Yet just 12 years ago, Tesla Motors was born, in total anonymity. This manufacturer is not located on the American East Coast, in the heart of Japan and even less in Germany, but in Palo Alto, in the heart of Silicon Valley, the cradle of technological entrepreneurship.
By launching a new market, Tesla Motors was able to impose itself in a clearly closed and hostile environment. Today, the company is known worldwide for its 100% electric premium sedans. However, the company’s intention is not to stay in this segment.
As early as 2006, CEO Elon Musk outlined Tesla’s plan to enter the electric vehicle market from the top by offering a high-performance sports car (the Roadster), then move downmarket with the Model S and Model X, and finally, offer a more affordable vehicle by 2017 (Model 3).
A crazy gamble, which is already proving to be a success. The first quarter of 2015 attests to this with more than 10,000 Model S delivered and a target of 55,000 deliveries in 2015 (Model S and Model X). This figure may seem paltry compared to the 3 million Peugeot cars sold in 2014. Yet the company led by Elon Musk now has a market capitalization 2.5 times that of Peugeot.
Here is the list of 6 Key Factors Behind Teslas’ Success.
Digital and Electric at the Heart of Tesla Motors Vehicles
Major groups, whether from the automotive sector or not, often take Tesla Motors as a model for the new era we are living in. Is it its approach to electric cars? Certainly, at the end of last year, the company began construction of its Gigafactory, from which all its batteries will come. Is it its approach to technology? Of course, because the Model S was designed like a smartphone, with a hardware part and a software part.
Thus, overnight, Model S owners have new features for free. This was the case in January with the adaptive cruise control (version 6.1 of the software) or the blind spot detector a month ago (version 6.2).
Tesla Motors is taking advantage of this 3G connection to offer other services to its customers, such as an Android and iOS application that allows them to pre-heat or air-condition the cabin or to remotely monitor the charging of their vehicle. These are 6 key factors behind Teslas’ success. Tesla Motors technicians can also remotely intervene in the car in case of problems.
6 Key Factors Behind Teslas’ Success
In the end, it is a more complex set of all these points. Charles Delaville confirms that there are 6 key factors behind Teslas’ Success:
1. The Refusal to Accept the Status Quo and Compromise
The company was fortunate to be able to design the Model S from scratch and create the best possible vehicle with existing and internally developed technologies. Some people take this to mean It’s a given that a car doesn’t evolve once it leaves the dealership. The Model S, on the other hand, evolves over the months and updates. These are 6 key factors behind Teslas’ success.
2. The Quality of the Product Marketed
The Model S is the first 100% electric premium sedan. It is safe, powerful, stylish, and technological, and offers unique features.
3. A Very Different Sales Approach than Competitors
Tesla Motors markets the Model S directly, without using intermediaries. This allows Tesla to control the experience offered to its potential customers when they visit one of its stores in Paris or Aix-en-Provence, for example. These are 6 key factors behind Teslas’ success.
4. A Fairly Similar Approach on the Production Side
The whole process is very integrated. In its Fremont, California plant, the company manufactures the electric motor, the gearbox, the power converter, and the aluminum body. This is one of the best key factors of the 6 key factors behind Teslas’ success.
5. Consideration of the Challenges Customers Face
For example, to enable them to make long trips, Tesla deploys Superchargers that allow them to recharge up to 50% of their Model S battery in 20 minutes. As another example, to answer questions about reselling a vehicle of this type, the company is introducing the Tesla Trade-In Value Guarantee, which ensures that they get back 50% of the base price of the Model S and 43% of the options after 36 months. It’s a very pragmatic approach that seems to convince. These are 6 key factors behind Teslas’ success.
6. Entrepreneurial Adventure
Tesla seems to be expanding this expertise with the arrival of the PowerWall Battery for homes and businesses. The company’s approach remains the same, although Tesla will not market these batteries directly. The company is working with distributors or energy suppliers. In short, this entrepreneurial adventure proves that no market is inaccessible today. These are 6 key factors behind Teslas’ success.
If the efforts are considerable, the era of the “all-connected” makes it easier to challenge historical players whose size does not allow them to evolve as quickly as they should in order to keep up with usage. After the car, and the battery, what will be the next step for Tesla? We’ll have the answer very soon.