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How to tame the industry giants the Tesla way?

Updated: Nov 30, 2018



Tesla was somewhat of a misfit in the auto industry, they weren’t doing things the way the industry was used to doing.

Their product lifecycle resembles more to that of a high tech product than an automobile.

Automobiles especially cars have been the most treasured inventions the humankind has invented and relished the most in. The world has slowly started to take notice and move away from emissions and invest in electric propulsion and powertrain technology. In this regards the world has witnessed the Priuses, the Bolts and Pulse’ from Toyota, Chevrolet and Renault respectively; none of them have garnered the amount of praise, admiration and desirability among the customers as the Tesla.


Started in 2003 by martin Eberhard and Marc Tarpenning with an aim of making affordable electric cars, Tesla shot to fame when the twist of events led Elon Musk take charge of it as the CEO and chairman.


Tesla’s Clever Product Strategy:

Tesla employed a very clever product strategy to reach where they are today.

• First, they introduced the Roadster. With the Roadster they targeted the high income buyers who care more about the looks and performance. The launch of Roadster not only validated Tesla as a world class EV maker but also created a perception of exclusivity and rarity among the consumers which increased it’s desirability quotient. Since the Roadster was targeted at the rich customers, it also helped them to get noticed by the investor community.

• Then they launched a mid-luxury sedan called model-S was aimed at a more mature buyer who wanted equal amounts of style, luxury and value for money.

• Then they launched an uber cool looking electric SUV named Model-X which is a full sized electric SUV and is a fine product which can give the G wagons, the X series, Q series a run for their money.

• Model 3 which is the latest entrant in the affordable EV’s list has a persona of it’s own and aims to be Model-T of the electric world.


Dare to be Different:

Tesla was somewhat of a misfit in the auto industry, they weren’t doing things the way the industry was used to doing.

• Their product lifecycle resembles more to that of a high tech product than an automobile

• Their product distribution framework has completely nullified the need of having a network of dealerships to sell their cars and delivering them directly to the customers.

• The in-cabin gadgetry, the large infotainment system and the autopilot system and everything else inside the cars make them look more like a futuristic space tourer than a car.

• The technology that has gone into the Tesla’s is remarkable and no other auto manufacturer has come closer in achieving what they seemed to have achieved.

With the world realizing the need to go electric, Tesla would be a company which everyone will be looking upto.


Key Learnings :

We can learn a lot from the rise of Tesla:

• Devising a long term product strategy targeting every customer segment.

• Making sure your business, your products and services are solving problems.

• Not letting the industry rules become an impediment in the progress and think beyond those rules to carve out our own path.

• Becoming so good at doing what you’ve set out to do, that the veterans of the industry take notice and would want to collaborate with you.


Let us know in the comments, what do you think future of Tesla will be and what did you learn from Tesla’s story?

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Saurabh Bhandari

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