Tesla Case study 2

Topics: Electric vehicle, Electric car, Internal combustion engine Pages: 3 (1584 words) Published: May 10, 2015
Case Analysis Seminar Week MARketing

This Paper is the Synopsis of the case study ‘Tesla Motor Inc.’ which gives a broad overview to the overall car business in the US followed by the examination of the Electric Vehicle and previous models like the Nissan Leaf. With those information presented abd backed up by statistics and other researched data, the author go into detail in describing the new successful business mode from tesla. With innovation and determination to build an Electric car tesla was able to develop a whole new concept and product which was revolutionary to the car industry. Furthermore the Company went new ways in how they market and sold their products which was a new way to promote and successful sell their new innovation. America has a big car market with 20% of the households owning three or more vehicles and in general the American spend about 15% of their disposable income on cars. A once flourishing industry in the US it dropped significantly by 98% from 1969. The designing of a car was a difficult undertaking as numerous factors had to be taken into account for example the Powertrain which consists of the engine, transmission and various other complementary parts that needed to be considered by designing a car. The chassis and body plays also a major role as those elements where all necessary to build a fully functional vehicle. Therefore developing a new car uses a high amount of resources which results in to high cost from $1bn for a regular car and up to $6bn for an international car concept. And these cost doesn’t include the cost for the production plant where the manufacturer can assemble the product which mainly consisted of a Body shop, Paint Shop and an Assembly line. A production plant to accommodate all that plus an efficient production rate of 100.000-200.000 cars be priced between $1bn and $2bn. All this results in the fact that cars also very expensive to produce where their production cost makes up roughly...
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