Background of the Company

Tesla, Inc. is an American electric vehicle and clean energy company founded
by Elon Musk, JB Straubel, Martin Eberhard, Marc Tarpenning, and Ian Wright in
2003. Elon Musk became the company's largest shareholder. He became CEO in
2008. The company is named after the famous electrical engineer and physicist
Nikola Tesla. Tesla's primary goal is to accelerate the world's transition to
sustainable energy.

Tesla's commitment to sustainability extends beyond just producing electric

vehicles; it also includes renewable energy solutions such as solar panels and
energy storage systems like Powerwall. This holistic approach aims to create a
sustainable ecosystem where individuals can generate their own clean energy while
driving emission-free vehicles.

Tesla has revolutionized the automotive industry with its innovative approach
to electric mobility. By combining advanced technology with sustainable practices,
they have paved the way for a greener future in transportation.

Channel Members
Channel Structure

Tesla is a luxury automaker that provides a gasoline-saving, rechargeable

vehicle, among other distinguishing features. Additionally, Tesla has two sorts of
locations worldwide: retail and manufacturing. While Tesla manufactures cars,
batteries, and solar panels in factories, customers can purchase and repair Tesla
vehicles in retail locations. The corporation owns and operates Tesla's
manufacturing plants, as well as the Gigafactory, which manufactures battery packs
and stationary storage systems for its electric vehicles, which are marketed through
direct channels such as the Tesla online shop and Tesla physical stores.

Tesla's marketing channels follow a zero-level structure. Zero-level structures

are direct marketing channels where the producer sells directly to the consumer.
This means that their automobiles are sold to customers directly without the use of
intermediaries and, of course, with the presence of their sales operation, which is a
part of their management, who interacts with potential customers in order to close
the deal.

MANUFACTURER CUSTOMERS

Channel Intensity

Channel intensity refers to the level of distribution and availability of a product

through various channels. In the case of Tesla, a renowned electric vehicle
manufacturer, its channel intensity is exclusive. This can be attributed to several
factors.

Firstly, Tesla follows a direct sales model, bypassing traditional dealerships.

This means that customers can only purchase their vehicles directly from Tesla
stores or online platforms. By eliminating intermediaries, Tesla maintains control
over the entire customer experience and ensures consistent messaging about their
brand and products.

Secondly, Tesla's limited number of showrooms and service centers also

contributes to its low channel intensity. Unlike other automakers that have an
extensive network of dealerships across different regions, Tesla has strategically
placed showrooms in select locations. While this may limit accessibility for some
potential customers, it allows Tesla to focus on providing exceptional service and
maintaining high-quality standards.

Lastly, the exclusive nature of Tesla's products also affects its channel
intensity. With a higher price point compared to conventional vehicles, Tesla’s are
marketed towards a niche market segment consisting of environmentally conscious
consumers who prioritize luxury and innovation in their purchasing decisions.

In conclusion, Tesla's direct sales model, limited showrooms and service

centers, as well as its exclusive target market, are their strategies to make their
brand prestigious and stand out from others. While this approach may restrict
accessibility for some customers, it aligns with the company's vision for delivering
exceptional customer experiences and maintaining control over their brand image.