“MARKETING STRATEGY OF TESLA”

A Project Submitted to

University of Mumbai for partial completion of the degree of

Bachelor in Management Studies (Marketing) Under the
Faculty of Commerce

By
MR. PRINCELY ROOZARIO SILVA
Under The Guidance Of
PROF. RUBINA D’MELLO

ST.GONSALO GARCIA COLLEGE,VASAI (W)

2023 – 2024

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 DECLARATION

I the undersigned Mr. PRINCELY ROOZARIO SILVA here by, declare that the work
embodied in this project work titled “MARKETING STRAEGY OF TESLA” forms my
own contribution to the research work carried out under the guidance of PROF.RUBINA
D’MELLO is a result of my own research work and has not been previously submitted to
any other University for any other Degree/ Diploma to this or any other University.

Wherever reference has been made to previous works of others, it has been clearly
indicated as such and included in the bibliography.
I, here by further declare that all information of this document has been obtained and
presented in accordance with academic rules and ethical conduct.

PRINCELY ROOZARIO SILVA

Certified by

PROF.RUBINA D’MELLO

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 CERTIFICATE

This is to certify that PRINCELY ROOZARIO SILVA OF BACHELOR IN

MANAGEMENT STUDIES [MARKETING] Semester VI (2021-2022) has successfully
completed the research on sales promotion techniques at Tesla under the guidance of
PROF. RUBINA D’MELLO.

PRINCIPAL (CO-ORDINATOR )

(DR.SOMNATH VIBHUTE) PROF. RUBINA D’MELLO

PROJECT GUIDE EXTERNAL EXAMINER

 (PROF. RUBINA DMELLO)

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 ACKNOWLEDGEMENT

I would like to acknowledge the following as being idealistic channels and fresh
dimensions in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chance to do
this project.

I would like to thank my Principal, DR.SOMNATH VIBHUTE for providing the

necessary facilities required for completion of this project.

I would also like to express my sincere gratitude towards my project guide

PROF.RUBINA D’MELLO whose guidance and care made the project successful.

I would like to thank my College Library, for having provided various reference books
and magazines related to my project.

Lastly, I would like to thank each and every person who directly or indirectly helped me
in the completion of the project especially My Parents and Peers who supported me
throughout my project

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 EXECUTIVE SUMMARY
As a part of university research project, research was conducted on factors responsible for
customer’s opinion about owning a car from tesla. The main of this project was to study
various reasons that drives a buyer to Tesla.
With the help of the project researchers wants to find out the factors which attracts the
customers to the brand and gives a competitive advantage to it. Tesla's broad differentiation
strategy is a long term play, with a focus on electric automobile automation, battery
technology, and environmentally friendly products such as solar roof tiles. According to the
About Tesla page, Tesla's mission is to accelerate the world's transition to sustainable energy.
The research is conducted on people who have visited Tesla’s showroom through
questionnaires and through feedback from customers and staff.
Primary research is conducted through questionnaires and secondary research is conducted
through the internet.
After conducting the research, the result was that people or customers visit Tesla for the quality
product that they offer and for the eco-friendly motors. Also for luxury purpose .
The objective of the project was to learn Tesla’s strategies and to know about how tesla has
gained new buyers as a significant portion of the customer base.

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 INDEX

SR NO. Particulars Page No

Chapter 1
1.1 Introduction 1

1.2 What is Marketing? 2

1.3 What is Tesla? 3

1.4 Sales Promotion Techniques at tesla 3

1.5 Marketing mix of Tesla (4P’S) 7

1.6 What Are the 4P’S? 8

1.7 Social media marketing of Tesla 10

1.8 Tesla’s zero dollar budget marketing strategy 11

1.9 Products of Tesla 13

1.10 The BCG Matrix of Tesla Motors 15

1.11 Technology of Tesla 19

1.12 Company profile 21

1.13 S.W.O.T analysis of tesla 22

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 Literature Review 29

Chapter 2

Chapter 3 Objectives of study 32

3.1 Objectives 32

3.2 Scope 32

3.3 Limitations 32

Chapter 4 Research methodology 33

4.1 Methods of research 33

4.2 Tools 34

4.3 Sample size 34

4.4 Research Area 34

4.5 Data Presentation 34

Chapter 5 Data analysis 35

Chapter 6 Findings and Recommendations 50

 6.1 Findings 50

6.2 Recommendations 52

Chapter 7 Conclusion 53

Chapter 8 Bibliography 54

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 CHAPTER 1

1.1 INTRODUCTION

Tesla, Inc. earlier known as Tesla Motors specializes in electric cars, Lithium-ion battery for
energy storage, and residential solar panels through their solar city subsidiary. Elon Musk, JB
Straubel, Martin Eberhard, Marc Tarpenning, and Ian Wright founded Tesla on July 1, 2003 and
Elon Musk is currently Tesla’s Chairman, Product Architect and CEO. Tesla is headquartered
in Palo Alto, California with more than 30,000 employees and 212 stores worldwide with
many more on the way. Tesla went public in June 2010 and generated over $226 million in its IPO.
In 2008, Tesla released its first electric vehicle, the Tesla Roadster, and sold over 2,100 of them in
32 countries. Tesla modeled the Roadster after the Lotus Elise by securing a contract with Lotus
for 2,500 Elise Gliders. In the fall of 2012 Tesla released the Model S, the first fully electric,
luxury, high performance sedan. In March 2009, a prototype of the Model S was released at
a public exhibition. It was met with great reviews and received over 8000 pre-orders for the vehicle.
With significantly greater manufacturing capabilities and a price tag less than half that of the first
electric sports car Roadster, the Model S penetrated a larger share of the market in 2013. In
2012, when Tesla was about to launch the Model S, they clearly stated their mission to be “a clean
start, committed to electric built around the driver, and sparking the evolution” the same as it is
today.
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Its aim was to constantly innovate and deliver the most efficient and sustainable electric
cars. Later Tesla segmented their business into Electric car and other green energy empowered
subsidiaries.

1.2 What is Marketing?

Marketing refers to activities a company undertakes to promote the buying or selling of a product
or service. Marketing includes advertising, selling, and delivering products to consumers or other
businesses. Some marketing is done by affiliates on behalf of a company.Professionals who work
in a corporation's marketing and promotion departments seek to get the attention of key potential
audiences through advertising. Promotions are targeted to certain audiences and may involve
celebrity endorsements, catchy phrases or slogans, memorable packaging or graphic designs and
overall media exposure. Marketing as a discipline involves all the actions a company undertakes
to draw in customers and maintain relationships with them. Networking with potential or past
clients is part of the work too, and may include writing thank you emails, playing golf with
prospective clients, returning calls and emails quickly, and meeting with clients for coffee or a
meal. At its most basic level, marketing seeks to match a company's products and services to
customers who want access to those products. Matching products to customers ultimately ensures
profitability.

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1.3 WHAT IS TESLA?

The market for fully electric vehicles is growing. The reasons are many, including new
regulations on safety and vehicle emissions, technological advances, and shifting customer
expectations.
But much of the mainstream acceptance and excitement for electric cars can be attributed
to Tesla Motors Inc. and its unique business model.Tesla founder and CEO Elon Musk launched
the company with the mission, “to accelerate the advent of sustainable transport by bringing
compelling mass-market electric cars to market as soon as possible.”1 This mission is the
backbone of Tesla’s successful business model.
Once Tesla established its brand and had produced and delivered its concept car to the
marketplace, it reinforced its business model. Tesla's business model is based on a three-pronged
approach to selling, servicing, and charging its electric vehicles

1.4 SALES PROMOTION TECHNIQUES AT TESLA INC:

1. Be Authentic-

There's nothing fake about the Tesla brand. From owning its mistakes and failures
(Elon Musk once said that starting the company was “idiocy squared”) to sharing Tesla's secret
master plan, every blog post and tweet is real and personable. Modern consumers are social
mediasavvy — they can tell when a brand is being authentic or not. At Qode Media, being
authentic is one of our principles for a successful social media strategy. Your content has to be
authentic in order to feel authentic. If you make a mistake, own up to it. This will help you earn
your audience's respect.

2. Simplify The Customer Experience-

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 Unlike with traditional car sales, consumers looking to buy a Tesla don't have to deal
with a lengthy in-person purchasing process. Instead, ordering and configuring a Tesla is as simple
as going online.To simplify your customers' experience, make interacting with your brand as
seamless as possible. One step you can take is making your website more efficient and
userfriendly.

3. Rely On Word-Of-Mouth-

Tesla uses one of the most effective methods of marketing: word-of-mouth. The brand's
referral program rewards those who share their experiences with others. Consumers tend to trust
recommendations from people they know and trust — friends, co-workers and family members —
more than brand-owned channels.You can take steps to earn and encourage word-ofmouth. Start by
making sure that your product, sales process and customer service are the best you can offer.
On the path to gain consumers' trust, the next steps can be the implementation of a family and
friends referral program as well as an engaging newsletter strategy that encourages your advocates
to share any updates or good news happening with your company.

4. Connect With The Community-

Building connections with the community can be the key to any brand's success. Tesla
has a solid user focus that includes customer forums and an owner club. This allows the company
to build loyalty and passion for the brand. This approach also fuels a robust foundation of content
that builds on itself and is available for prospective buyers to peruse.
Amid the pandemic, brands that have gone beyond the promotion of their products and
services and been involved with the community in various ways — such as donating and raising
money to help local healthcare centers and encouraging social distancing in a responsible way —
are the brands that seem to have connected with their communities the most.

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5. Have A Social, Charismatic CEO-

The name "Tesla" not only conjures up images of a sleek, aerodynamic electric sports
car, but the name of its charismatic CEO also quickly follows. Musk has been a driving force
behind the brand.Tesla turned the automotive industry on its head, and Musk did the same for CEO
behavior.
In most cases, CEOs tend to be a careful bunch, but not Musk. Though his social media presence
has been controversial at times, ultimately, it has served as a key way to promote Tesla. CEOs who
are active on social media, socially responsible and charismatic can have a tremendously beneficial
effect on their brands' recognition.

6. Be Consistent With Your Brand's Mission And Vision-

While Tesla clearly wants to sell cars, the brand is also focused on leading the world in the
transition to electric vehicles and renewable energy.
This thread seems to resonate with the brand's audience and is repeated time and again.To support
your goals, make sure your mission and vision are strong, and communicate them often.

7. Use Multiple Channels For Brand Exposure-

Taking advantage of numerous public relations opportunities is a natural and seamless

way to make your brand known. While Tesla's social media channels and website provide brand
awareness, the company also has gained attention for partnering with colleges to offer its START
program.

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The 12-week training program helps students gain the skills they need to work in electric car
manufacturing.PR campaigns can be highly effective for showcasing your brand’s goals and
mission and getting the support of the community.

Social media is probably a given, but online video exposure on platforms beyond YouTube
(Vimeo, Facebook, Instagram and the ever-growing TikTok are the best-known examples) can be a
nice addition to your digital marketing arsenal.

8. Stand With Your Competitors-

Musk made all Tesla's patents open-sourced so anyone anywhere has access to them. He
is also known to be supportive of the brand's competition when they've demonstrated progress on
the electric vehicle front.Healthy competition may be synonymous with innovation and more
options for clients. Recognizing competitors' achievements, supporting positive initiatives for your
industry and siding with competitors on the best practices of your trade are simple ways to stand
with your competitors while still aiming to be the best at what you do.During challenging times,
observing and learning from the successful marketing tactics of other brands, like Tesla, can be
fundamental in helping you see the bigger picture and developing your own winning digital
marketing strategy.

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1.5 MARKETING MIX OF TESLA(4P’S)

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 Tesla is bringing the world closer to sustainable energy with electric cars, and renewable
energy solutions. Now, we will be highlighting the one-of-a-kind marketing strategy of Tesla Motors,
which made the brand shine bright in the automobile industry. We will throw light on the interesting
marketing strategies and marketing mix of Tesla and how the company has achieved a 0$ marketing
budget.

•Product Strategy of Tesla-

Tesla has its vehicles in three models. Those are Model S, X, and 3. Every one of them is
made with amazing motors that can go from 0 to 60 mph in just 3 seconds. Every one of them has its
unmistakable eco-accommodating highlights. This brand is making critical changes by utilizing sun-
powered innovation in its significant energy frameworks for having better products and enhanced
performance.

•Place Strategy of Tesla-

Tesla doesn’t have any franchises. With its online-based organization claiming stores, this
brand eliminated the scaffold of third-party interaction. it utilizes the difficulty to get the idea. Its
vehicles are non-debatable; Because this organization doesn’t have a tremendous amount of items
like other car organizations, Tesla makes it difficult to get its vehicles.
Therefore, just a restricted segment of individuals can get them, and that is the thing that this
organization needs.

•Pricing Strategy of Tesla

The market cost of Tesla is far higher than other premium models of GM, Ford, and
Toyota, and so forth. The underlying pace of Tesla’s absolute first EV car model S had a sticker price
of $71000! Different models additionally cost between $70000 to $152000!Yet, the most amazing
part is, the interest in these vehicles hasn’t diminished a piece; all things considered, the developing
limit has made the cost of these vehicles increase considerably more as Tesla’s assembling plants
don’t want to fulfil the high demand of cars.

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This brand has utilized the eco-accommodating idea with superior tech, which has driven its

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estimating procedure into more achievement.

•Promotion Strategy of Tesla

Tesla shockingly got a ton of inclusion from its business edges and informality. Its progressive
items never required any extra advancement till now. Likewise, Elon Musk, the brainchild business
visionary and CEO of Tesla, with his enchanting words and incredible information, has been
effectively producing an enormous measure of free exposure oftentimes. This organization
consistently discovers better approaches to make media buzz, which no other organization’s
marketing team or CEO could do. since we have gained a brief knowledge about marketing mix. let’s
move to another important strategy called market strategy.

1.6 WHAT ARE THE 4PS?

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The four Ps of marketing are the key factors that are involved in the marketing of a

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good or service. They are the product, price, place, and promotion of a good or service. Often
referred to as the marketing mix, the four Ps are constrained by internal and external factors in the
overall business environment, and they interact significantly with one another.The 4 Ps are used by
companies to identify some key factors for their business, including what consumers want from
them, how their product or service meets or fails to meet those needs, how their product or service is
perceived in the world, how they stand out from their competitors, and how they interact with their
customers.The four Ps are the four essential factors involved in marketing a good or service to the
public.These are the four Ps: the product (the good or service), the price (what the consumer pays),
the place (the location where a product is marketed), and promotion (the advertising).The concept of
the four Ps has been around since the 1950s; as the marketing industry has evolved, the concepts of
people, process, and physical evidence have become important components of marketing a product,
too.

Product-
Product refers to a good or service that a company offers to customers. Ideally, a product
should fulfill an existing consumer demand. Or a product may be so compelling that consumers
believe they need to have it and it creates a new demand. To be successful, marketers need to
understand the life cycle of a product, and business executives need to have a plan for dealing with
products at every stage of their life cycle. The type of product also partially dictates how much
businesses can charge for it, where they should place it, and how they should promote it in the
marketplace.
Price-
Price is the cost consumers pay for a product. Marketers must link the price to the product's
real and perceived value, but they also must consider supply costs, seasonal discounts, and
competitors' prices. In some cases, business executives may raise the price to give the product the
appearance of being a luxury. Alternatively, they may lower the price so more consumers can try the
product.Marketers also need to determine when and if discounting is appropriate. A discount can
sometimes draw in more customers, but it can also give the impression that the product is less
exclusive or less of a luxury compared to when it is was priced higher.

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Place-
When a company makes decisions regarding place, they are trying to determine where they
should sell a product and how to deliver the product to the market. The goal of business executives is
always to get their products in front of the consumers that are the most likely to buy them.
Promotions-
Promotion refer to the entire set of activities, which communicate the product, brand or
service to the user. The idea is to make people aware, attract and induce to buy the product, in
preference over others.
There are several types of promotions. Above the line promotions include advertising, press releases,
consumer promotions (schemes, discounts, contests), while below the line include trade discounts,
freebies, incentive trips, awards and so on. Sales promotion is a part of the overall promotion effort.

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1.7 SOCIAL MEDIA MARKETING OF TESLA
Tesla’s CEO Elon Musk has provided a great boost to the presence of Tesla in the market.
He is socially active over social media and is always into little controversies. His idealistic
personality attracts many followers and his social platform becomes a platform for the marketing of
Tesla.Every tweet of Elon Musk creates a change in the stock exchange.
Such a social presence is beneficial for Tesla in the end for promotion.
Elon Musk has always been into creating buzz all over the internet.
His latest buzz was his window glass test of the newly launched cyber truck that was not supposed to
break, but it made a great buzz for Tesla, which turned out to be a promotion for Tesla’s cyber truck.

• Sales Centers
Tesla does not work as any general auto company does. It does not have any franchises to
offer to investors. They have created sales centres that work for sales and service at the same time.
Sometimes these franchise owners work more for the incentives rather than for the brand. These
centres are run by Tesla itself, therefore, cutting the incentive-based performance of franchise
owners.

• After Sales Service

Tesla provides world-class service support to its customers with facilities to enhance the
experience of any Tesla car owner and let them drive their vehicles without any worries. This level of
service support turns around into customer loyalty and support.

• Authentic Humorous Approach

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Tesla’s approach to its products starting from model x celebration mode to sending

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roadster to space justifies that the team of Tesla has some sense of humour. This connects the brand
to the public and the leader to lead this process is its CEO Elon Musk who creates buzz through his
funny and attractive tweets.

• Engages With Audience

Tesla is always loud and clear about what it is planning and true to its audience. Their
launch events with crazy car tests and communicating with the audience throughout online platforms
makes the brand active in the market.

1.8Tesla’s Zero Dollar Budget Marketing Strategy

When I use the words “the next big thing in the world of electric vehicles”, where does
your mind jump to? If an image of the tech giant Elon Musk’s Tesla pops in your head, you’re with
the rest of us! All this perception of Tesla is created through a marketing strategy with no spending
on the marketing budget. Surprised. Let’s see how? Now try to recollect the advertisements, slogans,
commercials, or any other promos of Tesla. Have anything? No? Good, because there aren’t any!

Yet how is it that the brand recall is so favorable to Tesla every time words like – Electric Vehicles,
Sustainable Energy, Innovation,are mentioned. Such is the genius of how Mr. Musk runs his show
that reflects in Tesla’s Marketing Strategy. He has made history by creating one of the most popular
brands with a $0 marketing budget.

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What does $0 marketing budget mean

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Imagine marketing a product just over a decade ago. It would mainly consist of print media

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(magazines, newspapers) or broadcast media (TV, Radio) that would invariably incur a huge expense,
right? But the rapid advancement in technology has propelled the variations in avenues through
which a product/service is marketed.

Without incurring a dollar to its name, products are now marketed through Internet and Social Media
platforms like Twitter, Facebook, Instagram. This results in $0 budget marketing. A strong online
presence has proven to be a successful equivalent to its competitors’ traditional approach, as shown
by Tesla.

What is different about Tesla’s Marketing Strategy?

Touted as the most valuable car company in the world, Tesla has earned this position within a short
span of 17 years, dethroning the long-time champion, Toyota. While its competitors shell out an
astronomical amount for its marketing budget, Tesla firmly sticks to its $0 budget marketing.
Time and time again, Mr. Musk has expressed his resistance to mainstream advertising citing it to be
a waste of resources. He has built the brand Tesla that is worthy of withstanding on its own with right
marketing strategy, leaving the reins of marketing to his consumers. Currently, Elon has one of the
strongest online presence compared to his competitors with a huge base of 39M followers on Twitter,
making him one of the first CEO influencers of our time. His constant interactions with consumers
directly (as opposed to a marketing team handling the account) creates an emotional connection.

Mission, Targets, and everything in between!

The brand loyalty of Tesla can’t be attributed just to Elon’s eccentricities though. Tesla’s mission is
“to accelerate the world’s transition to sustainable energy” and they strive to do that in every way
possible.
Now more than ever, there is a pressing need to reverse the negative impact on the environment.
Their products – Solar panels, Solar Roof systems, Zero-emission transport with their Electric
Vehicles(EV), etc. create a sustainable energy eco-system. Addressing the potential climate disaster
and working towards it, genuinely, is a refreshing take from a billion-dollar company. This earns
brownie points from the anxious public who are pretty much doomed to face the wrath of climate
change by this point.

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In October 2017, when Hurricane Maria devastated Puerto Rico, Tesla extended support by offering

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an alternative source of power for the affected areas. Apart from just Tesla, Elon Musk and his other
ventures try to help whenever there is an actual need.Back in 2018, Elon and his team prepared to
save 4 boys stuck in a Thai Cave, immediately jumping into action. Although it didn’t come to
fruition, it was widely noted that the tech could be used in any future crisis.Currently, they’re
working to get the approval to enable sensors to detect if a child is left in a hot car for their future
models.

Tesla’s Marketing Strategy of Customer being the King

Apart from the mentioned factors, how does Tesla appeal to its set of customers and earn their trust to
come back again? When customers show interest in the purchase, Tesla enables them to directly
approach them, deleting the arrangements with traditional car dealerships. In addition to this, their
product can also be customized based on the buyer’s preference. This creates an ease of doing
business with Tesla as opposed to what could have been a long, tedious process.
With its primary focus being Customer Experience, Tesla has topped the list of Consumer Reports
Owner Satisfaction Survey. Having said this, it doesn’t necessarily mean that it’s perfect. No. It only
means they embrace their flaws and try to improve as they go. Tesla welcomes feedback from its
consumers, using them for further improvements. Ultimately, that’s what’s expected from purchase,
isn’t it? Customer Satisfaction. Their unshakable ideology for a better future and their commitment to
keeping the customers happy, all led by a mastermind results in the holy trifecta that requires no
additional support from marketing (at least in the present climate) to solidify their brand. They can
stand tall on their own, carving a new space for themselves that’s hard to compete while others are
ready to forgo billions in doing the same!

1.9 Products of Tesla

Model S

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The Model S is a five-door liftback sedan. Deliveries began on June 22, 2012 The car became the

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first electric vehicle to top the monthly sales ranking in any country, when it achieved first place in
the Norwegian new car sales list in September 2013.The Model S won the 2013 Motor Trend Car of
the Year,the 2013 "World Green Car", Automobile magazine's 2013 "Car of the Year",Time
magazine's Best 25 Inventions of the Year 2012 award,as well as the 2019 Motor Trend "Ultimate
Car of the Year".The Model S was the best-selling plug-in electric car worldwide for the years 2015
and 2016, selling an estimated 50,931 units in 2016.By the end of 2017, it was the world's second
best selling plug-in electric car in history (after the Nissan Leaf), with global sales of 200,000
units.In June 2020, Tesla announced that the Model S Long Range Plus had an EPA range of 402
miles (647 km), the highest of any battery electric vehicle at the time

Model X

The Tesla Model X is a mid-size crossover SUV. It is offered in 5-, 6- and 7-passenger
configurations. The Model X was developed from the full-sized sedan platform of the Model S. The
rear passenger doors open vertically with an articulating "falcon-wing" design.Deliveries started in
September 2015.In 2016, after one full year on the market, the Model X ranked seventh among the
world's best-selling plug-in cars.The United States is its main market, with an estimated 57,327 units
sold through September 2018.

Model 3

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The Model 3 is a four-door fastback sedan. Tesla unveiled the Model 3 on March 31,

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2016.Potential customers began reserving spots earlier that day with a refundable deposit.One week

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after the unveiling, Tesla reported over 325,000 reservations.Bloomberg News claimed that, due to
the number of reservations, "the Model 3's unveiling was unique in the 100-year history of the mass-
market automobile.Limited vehicle production began in July 2017.Since March 2020, the Model 3 is
the world's best selling electric car in history, and cumulative global sales passed the 1 million
milestone in June 2021. The Model 3 has ranked as the world's best selling plug-in electric car for
four consecutive years, from 2018 to 2021,and also as the best selling plug-in electric car in the
United States since 2018.The Model 3 also set records in Norway and the Netherlands, as the best
selling passenger car model in those countries in 2019.

Model Y

The Model Y is a compact crossover utility vehicle. The Model Y is built on a platform that shares
many components with the Model 3.The car has up to three rows of seats (up to 7 people),68 cubic
feet (1.9 m3) of cargo space (with the second and third rows folded),and has an EPA range of up to
326 miles (525 km).The Model Y was unveiled on March 14, 2019.Deliveries for the Model Y
started on March 13, 2020. The Tesla Model Y is being manufactured at Tesla Factory in Fremont,
California,as well as in Giga Shanghai in China. A version of the Model Y is also expected to be
produced at Giga Berlin once the factory is open.

BCG Matrix

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1.10 The BCG Matrix of Tesla Motors

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The BCG matrix is a strategic management tool that was created by the Boston Consulting Group,

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which helps in analysing the position of a strategic business unit and the potential it has to offer. The
matrix consists of 4 classifications that are based on two dimensions. These first of these dimensions
is the industry or market growth. The other of these dimensions is the relative market share of the
strategic business unit. Strategic business units are placed in one of these 4 classifications. The BCG
matrix for Tesla Motors will help decide on the strategies that can be implemented for its strategic
business units.

Strategic business units with high market growth rate and high relative market share are called stars.
Businesses should invest in their stars and can implement vertical integration, market penetration,
product development, market development, and horizontal integration strategies. Strategic business
units with high market growth rate and low relative market share are called question marks. These
strategic business units require close considerations whether the business should continue with them
or divest. Strategic business units with low market growth rate but with high relative market share are
called cash cows. The business should invest in these to maintain their relative market share. Lastly,
the strategic business units with low market growth rate and low relative market share are called
dogs. The business should divest these strategic business units.

Stars
The financial services strategic business unit is a star in the BCG matrix of Tesla Motors. It operates
in a market that shows potential in the future. Tesla Motors earns a significant amount of its income
from this SBU. Tesla Motors should vertically integrate by acquiring other firms in the supply chain.
This will help it in earning more profits as this Strategic business unit has potential.

The Number 1 brand Strategic business unit is a star in the BCG matrix of Tesla Motors, and this is
also the product that generates the greatest sales amongst its product portfolio. The potential within
this market is also high as consumers are demanding this and similar types of products. Tesla Motors
should undergo a product development strategy for this SBU, where it develops innovative features on
this product through research and development. This will help Tesla Motors by attracting more
customers and increases its sales.

The Number 2 brand Strategic business unit is a star in the BCG matrix of Tesla Motors as Tesla

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Motors has a 20% market share in this category. It also the market leader in this category. The overall

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category is expected to grow at 5% in the next 5 years, which shows that the market growth rate is
expected to remain high. Tesla Motors should use its current products to penetrate the market. This
could be done by improving its distributions that will help in reaching out to untapped areas. This will
help increase the sales of Tesla Motors.

Cash Cows

The supplier management service strategic business unit is a cash cow in the BCG matrix of Tesla
Motors. This has been in operation for over decades and has earned Tesla Motors a significant amount
in revenue. The market share for Tesla Motors is high, but the overall market is declining as companies
manage their supplier themselves rather than outsourcing it. The recommended strategy for Tesla
Motors is to stop further investment in this business and keep operating this strategic business unit as
long as its profitable.

The Number 3 brand strategic business unit is a cash cow in the BCG matrix of Tesla Motors. This is
an innovative product that has a market share of 25% in its category. Tesla Motors is also the market
leader in this category. The overall category has been declining slowly in the past few years. Tesla
Motors has the power to influence the market as well in this category. It should, therefore, invest in
research and development so that the brand could be innovated. This will help the category grow and
will turn this cash cow into a star. The overall benefit would be an increase in sales of Tesla Motors.

The international food strategic business unit is a cash cow in the BCG matrix for Tesla Motors. This
business unit has a high market share of 30% within its category, but people are now inclined less
towards international food. This change in trends has led to a decline in the growth rate of the market.
The recommended strategy for Tesla Motors is to invest enough to keep this strategic business unit
under operations. If it no longer remains profitable and turns into a dog, then Tesla Motors should
divest this strategic business unit.

36
Question Marks

37
The local foods strategic business unit is a question mark in the BCG matrix for Tesla Motors. The

38
recent trends within the market show that consumers are focusing more towards local foods. Therefore,
this market is showing a high market growth rate. However, Tesla Motors has a low market share in
this segment. The recommended strategy for Tesla Motors is to invest in research and development to
come up with innovative features. This product development strategy will ensure that this strategic
business unit turns into a cash cow and brings profits for the company in the future.

The Number 4 brand strategic business unit is a question mark in the BCG matrix for Tesla Motors.
This strategic business unit is a part of a market that is rapidly growing. However, this strategic
business unit has been incurring losses in the past few years. It has also failed in the attempts made at
innovation by research and development teams. The recommended strategy for Tesla Motors is to
divest and prevent any future losses from occurring.

The confectionery strategic business unit is a question mark in the BCG matrix for Tesla Motors. The
confectionery market is an attractive market that is growing over the years. However, Tesla Motors has
a low market share in this attractive market. The low sales are as a result of low reach and poor
distribution of Tesla Motors in this segment. The recommended strategy for Tesla Motors is to undergo
market penetration, where it pushes to make its product present on more outlets. This will ensure
increased sales for Tesla Motors and convert this strategic business unit into a cash cow.

Dogs

The plastic bags strategic business unit is a dog in the BCG matrix of Tesla Motors. This strategic
business unit has been in the loss for the last 5 years. It also operates in a market that is declining due
to greater environmental concerns. The recommended strategy for Tesla Motors is to divest this
strategic business unit and minimise its losses.

The Number 5 brand strategic business unit is a dog in the BCG matrix for Tesla Motors. This is
operating in a market segment that is declining in the past 5 years. The company also has negative
profits for this strategic business unit. However, it is expected that the market will grow in the future
with environmental changes that are occurring. The recommended strategy for Tesla Motors is to invest
in the business enough to convert into a cash cow. This will ensure profits for Tesla Motors if the
market starts growing again in the future.

39
The synthetic fibre products strategic business unit is a dog in the BCG matrix of Tesla Motors. The

40
market for such products has been declining, and as a result of this decline, Tesla Motors has been
facing a loss in the past 3 years. The market share for it is also less than 5%. The recommended strategy
for Tesla Motors is to divest this strategic business unit to minimise any further losses.

The artificially flavoured products strategic business unit is a dog in the BCG matrix for Tesla Motors.
These products were launched recently, with the prediction that this segment would grow. However,
with increasing health consciousness, people are now refraining from consumption of artificial
flavours. The market is shrinking, and Tesla Motors has no significant market share. The recommended
strategy for Tesla Motors is to call back this product.

1.11 Technology of Tesla

Vechicle Batteries

Tesla was the first automaker to use batteries containing thousands of small, cylindrical, lithiumion
commodity cells like those used in consumer electronics.Tesla uses a version of these cells that is
designed to be cheaper to manufacture and lighter than standard cells by removing some safety
features; according to Tesla, these features are redundant because of the advanced thermal management
system and an intumescent chemical in the battery to prevent fires.The batteries are placed under the
vehicle floor. This saves interior and trunk (boot) space but increases the risk of battery damage by
debris or impact (see crashes and fires). After two vehicle fires in 2013 due to road debris, the Model
S was retrofitted with a multi-part aluminum and titanium protection system to reduce the possibility
of damage.

41
In 2016, former Tesla CTO J.B. Straubel expected batteries to last 10–15 years,and discounted using

42
electric cars to charge the grid with vehicle-to-grid because the related battery wear outweighs
economic benefit.He also preferred recycling over re-use for grid once they reach the end of their
useful life for vehicles.[229][230] Tesla launched its battery recycling operation at Giga Nevada in
2019.Panasonic is Tesla's supplier of cells in the United States, and cooperates with Tesla in producing
cylindrical 2170 batteries at Giga Nevada. As of January 2021, Panasonic has the capacity to produce
39 GWh per year of batteries at Giga Nevada.Tesla's battery cells used in Giga Shanghai are supplied
by Panasonic and Contemporary Amperex Technology (CATL), and are the more traditional prismatic
(rectangular) cells used by other automakers.

Battery Research

Tesla invests in lithium-ion battery research. Starting in 2016, the company established a 5-year battery
research and development partnership at Dalhousie University in Nova Scotia, Canada, with lead
researcher Jeff Dahn.Tesla acquired two battery companies: Maxwell Technologies, acquired for over
$200 millio but sold in 2021and Hibar Systems.During Tesla's Battery Day event on September 22,
2020, Tesla announced the next generation of batteries, featuring a tab-less battery design to increase
the range and decrease the price of Tesla vehicles.The new battery is named the "4680" in reference to
its dimensions: 46 millimetres (1.8 in) wide by 80 millimetres (3.1 in) tall.Notably, Musk did not show
any physical prototypes or examples of 4680 batteries at the event.Two weeks before Battery Day,
Tesla paid a total of $3 to buy several battery manufacturing patent applications from Springpower
International, a small Canadian battery company. Tesla predicted the new batteries could be up to 56%
cheaper and allow the cars to have a 54% longer range.The company said this would be achieved by a
more efficient production process, new battery design, cheaper resources for the anode and cathode,
and better integration into the vehicle.Business analysis company BloombergNEF estimated Tesla's
battery pack price in 2021 at $112 per kWh, versus an industry average of $132 per kWh.As of
December 2021, BloombergNEF estimates the industry as a whole will reach $100 per kWh in
2024.The United States Department of Energy estimated in 2020 that with battery prices at $100 per
kWh, electric cars would be the same cost to purchase as comparable gasoline-powered cars, which
would accelerate the sales of electric cars.

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Motors

Tesla makes two kinds of electric motors. Its oldest design in production is a three-phase four-pole
alternating current induction motor with a copper rotor (which inspired the Tesla logo), which is used
as the rear motor in the Model S and Model X. Newer, higher-efficiency permanent magnet motors are
used in the Model 3, Model Y, the front motor of 2019-onward versions of the Model S and X, and are
expected to be used in the Tesla Semi.The permanent magnet motors increase efficiency, especially in
stop-start driving.

44
AutoPilot

45
Autopilot is an advanced driver-assistance system developed by Tesla. The system requires active
driver supervision at all times.Since September 2014, all Tesla cars are shipped with sensors (initially
hardware version 1 or "HW1") and software to support Autopilot.Tesla upgraded its sensors and
software in October 2016 ("HW2") to support full self-driving in the future.HW2 includes eight
cameras, twelve ultrasonic sensors, and forward-facing radar.HW2.5 was released in mid-2017, and it
upgraded HW2 with a second graphics processing unit (GPU) and, for the Model 3 only, a driver-
facing camera HW3 was released in early 2019 with an updated and more powerful computer,
employing a custom Tesla-designed system on a chip.In April 2019, Tesla announced that all of its cars
will include Autopilot software (defined as just Traffic-Aware Cruise Control and Autosteer (Beta)) as
a standard feature moving forward.[261] Full self-driving software (Autopark, Navigate on Autopilot
(Beta), Auto Lane Change (Beta), Summon (Beta), Smart Summon (Beta) and future abilities) is an
extra cost option.In 2020, Tesla released software updates where its cars recognize and automatically
stop at stop signs and traffic lights.In May 2021, Tesla removed the radar sensor and radar features
from its Model 3 and Model Y vehicles, opting instead to rely on camera vision aloneThe New York
Times reported in December 2021 that Musk "repeatedly told members of the Autopilot team that
humans could drive with only two eyes and that this meant cars should be able to drive with cameras
alone," an analogy some experts and former Tesla engineers described as "deeply flawed".Similarly, a
statistical analysis conducted in A Methodology for Normalizing Safety Statistics of Partially
Automated Vehicles debunked a common Tesla claim that Autopilot reduced crash rates by 40 percent
by accounting for the relative safety of the given operating domain when using active safety measures.

1.12Company Profile

1.Robyn M. Denholm-Independent Chairman of the Board

2.Elon Musk-Chief Executive Officer, Director

3.Zachary Kirkhorn-Master of Coin and Chief Financial Officer

4.Andrew D. Baglino-Senior Vice President - Powertrain and Energy Engineering

46
5.Kimbal Musk-Director

47
Tesla, Inc. designs, develops, manufactures, sells and leases electric vehicles and energy generation
and storage systems, and offers services related to its sustainable energy products. The Company's
segments include automotive, and energy generation and storage. The automotive segment includes
the design, development, manufacturing, sales and leasing of electric vehicles as well as sales of
automotive regulatory credits. The energy generation and storage segment include the design,
manufacture, installation, sales and leasing of solar energy systems and energy storage products,
services related to its products, and sales of solar energy system incentives. Its automotive products
include Model 3, Model Y, Model S and Model X. Model 3 is a four-door sedan. Model Y is a sport
utility vehicle (SUV) built on the Model 3 platform. Model S is a fourdoor sedan. Model X is an SUV.
The Company's energy storage products include Powerwall, Powerpack and Megapack.Tesla Energy
is one of the largest global suppliers of battery energy storage systems and is a major installer of solar
energy generation systems in the U.S. Now set to release its futuristic electric Cybertruck in late 2021,
things are looking up for Tesla.

1.13 S.W.O.T Analysis of tesla

Tesla Inc. was an American start-up powered by Silicon Valley. Tesla was named after Nikola Tesla,
who was a very successful inventor and scientist of his time. He had remarkable achievements in Radio
technology and electrical engineering of Serbian descent.Tesla, Inc., which was Tesla Motors Inc. in
the former days, has reached the heights of success as a dynamic automotive and energy solutions
organization. It is famous for its innovative approach in the market because of its dominant position
worldwide.Tesla has emerged as one of the most discussed and analyzed companies among business
enthusiasts. This SWOT analysis of the very organization will reveal all the significant insights
regarding every factor of Tesla business model.
Moreover, the overall results of this analysis also include strategic reforms in light of all the SWOT
factors, i.e., strength, weakness, opportunities, and threats.

Strengths of Tesla

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• A Top Employer Company

49
Any organization is as good as it employs. In the case of Tesla Inc., it is one of the key factors for the
company’s remarkable success. Wall Street Journal reports that Tesla has emerged as an ideal company
for employees due to its diversity and innovation-encouraging culture.

It has recently been listed as one of the ideal places to work, attracting young jobseekers with fresh
talents and energy. The company has also been featured in Forbes

• Most valuable Automotive company

Despite its issues, Tesla’s sales revenue was $53.8 Billion with 936,172 cars delivered to customers
in fiscal year 2021. The increase in the number of deliveries and its profitability of $5.6
Billion pushed the company’s market capitalization to over $1 Trillion and surpassed the market cap
of top 5 automaker (Toyota, Volkswagen, Daimler, Ford and General Motor) combined.Tesla has now
become the world’s most valuable automaker by market value.

• Best in class electric cars

Tesla has left behind every other brand in the race of the finest electric cars. When compared by their
range, Tesla’s electric cars have proven to be the best covering maximum distances. The recent
comparison shows that Tesla occupies the top three places in terms of range. The Tesla Model S will
get you the furthest – traveling up to 600 kilometers on a single battery charge. The nearest another
brand has got is the Opel Ampera, with a range of 520 kilometers.

• Innovative company

Tesla has a very high rate of innovation, (not to forget the recent developments of world’s first fully
electric semi truck and new sports car). Therefore, the market trust and expects the company to develop
competitive and profitable products which of course leads to substantial financial gains.

• Unconventional but Effective Strategies

50
Tesla’s unique but highly effective management strategy was recently exposed to the public after its

51
employee handbook was leaked. It revealed the unconventional secrets behind its success. Just like its
founder, Tesla’s handbook is no-nonsense, direct, and to the point. The company hires the smartest and
most innovative employees and holds them accountable by setting clear and concise targets.

Weaknesses of Tesla

All the internal factors in a company which causes any damage or bounds performance evaluation are
identified weaknesses in the SWOT Analysis. So, these are some of the shortcomings of Tesla’s
organizational structure, which reduce its competitiveness and business growth.

• Manufacturing Complications

The higher standard of innovation, the greater will be mechanical complications and production risk
factor. Tesla faces continuous launch, manufacturing and production ramp delays while launching their
new vehicles and other products.For example, Tesla faced endless manufacturing challenges when they
were about to launch Model X, which lead to constant delays for distribution. Similarly, the company
went through extreme troubles while manufacturing Model X’s battery module assembly line at
Gigafactory 1.

• Unable to meet demand might affect brand value

Due to highly experimenting and complicated procedures, Tesla’ might face an unbalanced supply
and demand, unable to meet the production ramp in the future.

• Lack of High Volume Production

There is no doubt that Tesla is the pioneer of actual energy-saving cars. But it has failed to produce
high volumes of automobiles for any of its models. Even now, as the company plans to manufacture
Model 3 vehicles at high volume, it faces issues in terms of production cost and management resources
and space expansion in Gigafactory 1.

• Shortage of Batteries

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In the annual shareholder meetings, CEO Elon Musk accepted that their production rate has decreased

53
due to the limited supply of batteries. The shortage directly affected the sales of electric vehicles and
energy storage systems.

• Elon Musk as Tesla’s Sole Representative

Tesla accepts that the company is a ‘one-man show.’ Sadly, that man, Elon Musk has a lot on his
shoulders to give his hundred percent to the company. Musk is also deeply involved in other projects
like space launch vehicles at Space Exploration Technologies Corporation and The Boring Company.

• Financial Uncertainty

Immense financial capabilities allow companies to compete for market share more effectively. Tesla
has outstanding debt of $5.38 Billion. If the company is unable to generate enough cash flow to repay
its debt, then there is a risk of delaying expansion, reducing investments, selling assets, etc.

• Employee Safety Concerns

Tesla was recently fined for creating a tent production line without a permit or safety inspection. Also,
the company did not train workers about the risks of working in the tent for long periods under the
scorching California’s heat. The soaring temperatures in the tent could have caused breathing issues
for some employees.

• Leadership Wrangles

Friction and conflict between management and the board of directors can undermine productivity and
long-term success. Tesla’s management and board have been engaged in several power tussles.

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Opportunities of Tesla

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The opportunity section of this SWOT Analysis emphasizes the emerging chances of growth for the

56
company. It is an external factor which, when identified, can help Tesla to improve its business
performance, management structure, and strategic growth and other aspects.

• Sales expansion in untapped Market

The most significant opportunity for the company right now is the Asian market, which is still
unsaturated in the field of automotive and renewable energy markets. Especially in the situation where
Tesla needs to expand its global market to increase its financial stability and stronger market presences.

• Less Expensive Car

Tesla is expensive due to its unconventional reliance on innovation, which requires maximum financial
support to entertain new technology.Recently, Tesla has launched Model 3, which is a more affordable
version of Model S with less range, power, and fewer features. However, it is an excellent opportunity
for Tesla to expand the size of their audience market.

• Bringing battery production technology in-house

Tesla intends to make its own battery cells. The move can be a big game-changer as it will help the
company to increase its manufacturing rate while reducing its production cost. Currently, Panasonic is
their primary supplier of batteries.

• Introduction of pick up truck

According to National Automobile Dealer Association market share data, Pick up truck accounts for
17.6 percent of the US automotive market, which has huge opportunity of growth in Electric Vehicle.
Cyber Truck can bring a lot of growth opportunities for Tesla in this segment.

• Market Confidence in Tesla

The stock market has shown confidence in Tesla after beating the projected car deliveries. As a result,
Tesla has reached a Trillion Dollar market cap.

• Exploit Air-Taxi Market

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Demand for innovative urban air-taxi services to supplant conventional taxis and reduce traffic

58
congestion and pollution is projected to increase drastically by 2025. Tesla has the expertise and
technology to deliver electric vertical takeoff and landing (eVTOL) vehicles and a second-largest
shareholder has already invested millions in air taxi startup Lilium.

Threats of tesla

The threat factor is combined with the phenomenon which stops the company from taking full
advantages of the benefits that can be derived from the available strengths. Therefore, these are the few
threats which Tesla faces to maintain the business despite the unpredictable conditions of the market.

• Product Liability Claims

Despite Tesla’s premium quality assurance and high standards of manufacturing, the automobile
industry, in particular, is accustomed to facing significant product liability claims which the company’s
fears to be one of the biggest financial blows. Tesla has launched many autopilot vehicles, and not all
of them have been successful in case of an accident. The company has faced lawsuits and claims related
to the failure of technology in their products. If these liability claims continued, then Tesla may be
subjected to greater financial setbacks.

• Extensive Competition

Tesla, Inc. faces aggressive competition from both alternative fuel vehicles (Hybrid, Plug-in hybrid,
fully electric car) and self-driving technology. Many automotive brands in the luxury segment like
Mercedes, BMW, Audi, Lexus and in the economy segment like Toyota, Ford, General Motors , Volvo
are getting ready for a fierce competition.

Many brands are not only launching or planning to launch their environment-friendly -Self-driving
technology but also, they are offering them at a comparably lower price. It is a definite threat for a
company like Tesla, which thrives on its unique value for innovative cars which are extremely
expensive and unaffordable for many.

• Product Defects

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Due to highly complex engineering for innovative vehicles, Tesla’s cars and other energy products have

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exhibited major flaws in many cases. The defective products often have weaknesses in design,
manufacturing, and other features which can harm the company’s image permanently.

• Long term confidence

For any company, the assurance of long term sustainability is essential to maintain the public image
and the company’s morale. Tesla, due to its unstable manufacturing conditions, suffers from disbelief
among the public about its long-term existence, which can result in a deficiency in further business
development.

• Custumer Adaptation

Any business run along the lines of customer’s acceptance. If the public is ready to adapt change,
companies benefit from the innovative range of products. However, it can be a slow, unforgiving
process, producing new challenges for companies like Tesla. The organization highly depends upon
customers willingness to adopt electric vehicles.

• Self-Driving Cars Are Still a Concern for Pedestrians

In a survey from YouGov, US adults still feel unsafe to walk around self driving cars. Especially, people
above the age of 55 are the most afraid to be around self-driving vehicles.

• Disruption of Supply Due to Shortage of Materials

Tesla can face major suspensions in the supply of manufacturing materials due to the increased prices.
The company uses aluminum, steel, lithium, nickel, copper, and cobalt, as well as lithiumion cells from
suppliers. All these materials have volatile prices, which can affect the company’s production line
severely in the future.

• High-Risk Factor Due to Usage of Lithium-ion

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 Tesla uses lithium-ion cells in their battery packs. Lithium is a highly reactive and explosive

their cars have caught fire and vented smoke, which has defamed the company on a major
level.

• Lack of Regulations for Self Driving

As there are no proper regulations for self -driving in many countries, including the US, Tesla’s
sale is effected by the s elf-driving restrictions in many areas. This confusing situation of legal

Chapter 2-Literature Review

Over the past 20 years, technology has changed the way humans communicate. Social media have
allowed people from around the world to communicate and build relationships without ever having
to meet in person (Kavoura, 2014). Social media have enabled people to virtually join groups from
an almost limitless array of special interests. An automobile enthusiast, for example, would 62

traditionally be limited to his surrounding geographical location to find other car enthusi asts.
element, which increases the risk factor of our products. Tesla has faced a a few cases where
complexity increases uncertainty about Tesla’s self-driving project’s future.

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Social media, however, have allowed him to interact with others of similar interests around the world

64
through networking sites (Facebook, Twitter, or Instagram), blogging sites (WordPress or Blogger),
or forums (Reddit). Members of these social media groups form a community of highly involved
people who both consume and produce content within their communication networks (Marwick &
Boyd, 2010).
Being active within a community has become an expectation in every aspect of life, including the
workplace (Lee, Hwang, & Lee, 2006). To create a community within the workplace,
organizations like Tesla Motors develop philosophy statements; these statements communicate the
values an organization prioritizes (Ledford, Wendenhof, & Strahley, 1995). Tesla’s main philosophy
statement is its Master Plan. It was created by board chairman (now CEO) Elon Musk to share the
company’s vision for the company and encourage stakeholders to join its cause. This study sought to
discover if Tesla strategically communicated values from its Master Plan through company blog
posts to create an imagined community. Because many of Tesla’s at Tesla
Motors employees work around the world, communities are “imagined,” or as Anderson (1983)
states, conceptual rather than location-based. This research explored if Tesla’s blogs provided
employees information about company values through the repeated use of strategically placed words
and if the intentional use of information constantly reminded employees of Tesla’s values.
As a military veteran, I learned that the “feeling” of belonging and participating within a community
helps members think their participation is significant. The belonging and participation I learned in the
U.S. Marine Corps inspired me to focus my research on how companies like Tesla create and
maintain communities through community integration. Integrating, or joining, into a community
requires its members to internalize the community’s values (Cohen, 1985). However, knowing what
the community values is not enough for integration; the new member must internalize the value
within his or her personal values. If an organization, for example, valued quality, the organization
would want new members to value the quality of their work because to give quality to customers, the
organization needs quality to be valued by employees in their own work. The strategic
communication of values is what I intend to discover by looking at Tesla Motors.

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Tesla Motors was founded in July 2003 by engineers Martin Eberhard and Marc Tarpenning. The

66
company has since revolutionized automotive manufacturing by introducing the first fully electric
motor vehicle that would compete with other high-end models such as the Lotus Elise. Tesla’s goal is
to eliminate the need for gasoline for fully electric automobiles. To accomplish this goal, Tesla
Motor’s then-chairman Elon Musk wrote in his 2006 Master Plan, found on the company’s website,
that the company would first “build a sports car,” then, “use that money to build an affordable car,”
and finally, “use that money to build an even more affordable car.” During the process, Musk claimed
that Tesla would accomplish these goals at Tesla Motors
while keeping the vehicles fully electric. Since 2006, Tesla has both expanded its inventory and
completed its first step of the Master Plan. As of July 2016, Musk, who is now Tesla’s CEO, released
“Part Deux” of the Master Plan. The second part elaborates on the company’s push to speed up
eliminating vehicle emissions through battery storage, a further expanded product line, and
automated driving to make traveling safer.This literature review explores community, how the
community concept does not require a location, and how individuals integrate into and participate in
communities. The review will then apply the concept of “imagined community” (Anderson, 1983) to
the organizational context. Finally, the review will explore blogging and how the social media
platform is used to build relationships and encourage community. Blogging offers a unique medium
for organizations to directly or indirectly reach their employees (Kelleher & Miller, 2006). Blogging
also provides organizations the ability to build relationships with their readers by using more
humanized, intimate language, which helps organizations create community. According to Cohen
(1985), community is an easily understood concept among people in their everyday lives, but to
social scientists, it is a more difficult concept to define. Scholars like Christensen and Livenson
(2003) define community as something that is meant to be experienced and is at the core of being
human. In contrast, Park (1929) states that, although communities transcend official boundaries, they
are location-based. For example, a farmer would not technically live within a governing community,
but he or she could be part of a community that has shared social ties and interests, such as churches
or fraternal organizations. Scholars also define community as a group of people working together on
shared concerns such as activism,appealing to community leaders, or both (Stamm, Emig, & Hesse,
1997). While shared concerns, social ties, and interests may create a community, historically
community was limited to face-to- face interactions and a geographic location (Christensen &
Levinson, 2003; Park, 1929

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 Chapter 3- Objectives of the study

3.1 Objectives

• To understand market strategy of Tesla.

• To understand the market position of Tesla
• To understand S.W.A.T analysis of Tesla
• To learn and study tesla’s strategies to stand out different in the market

3.1 Scope

• This study will help to understand tesla’s viewpoint toward’s the market
• This study will help in understanding various new strategies used in market
lately
• The study will help to understand customer insight towards the brand

3.3 Limitations
• Insufficient or Limited access to data
• The survey is based on a questionnaire
• Most of the respondent’s have not answered the questionnaire
• The respondent’s opinion or personal factor may differ
• Some of them were found not to have any knowledge of the topic

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 Chapter 4- Research Methodology

Research Methodology is the study of research methods,or, more formally, "'a

contextual framework' for research, a coherent and logical scheme based on views,
beliefs, and values, that guides the choices researchers [or other users] make".It
comprises the theoretical analysis of the body of methods and principles associated
with a branch of knowledge such that the methodologies employed from differing
disciplines vary depending on their historical development. This creates a continuum
of methodologies[5] that stretch across competing understandings of how knowledge
and reality are best understood. This situates methodologies within overarching
philosophies and approaches.Research Methodology may be visualized as a spectrum
from a predominantly quantitative approach towards a predominantly qualitative
approach.Although a methodology may conventionally sit specifically within one of
these approaches, researchers may blend approaches in answering their research
objectives and so have methodologies that are multimethod and/or
interdisciplinary.Overall, a research methodology does not set out to provide
solutions - it is therefore, not the same as a method.Instead, a methodology offers a
theoretical perspective for understanding which method, set of methods, or best
practices can be applied to the research question at hand.

4.1 Methods of Research

This research was conducted using primary and secondary modes of data.

Primary data: Primary data is a type of data that is collected by researchers directly
from main sources through interviews, surveys, experiments, etc. Primary data are
usually collected from the source—where the data originally originates from and are
regarded as the best kind of data in research.The sources of primary data are usually
chosen and tailored specifically to meet the demands or requirements of particular

69
research. Also, before choosing a data collection source, things like the aim of the
research and target population need to be identified. Primary data collected for this
study was through the questionnaire.

Secondary data: Secondary data is the data that has already been collected through
primary sources and made readily available for researchers to use for their own
research. It is a type of data that has already been collected in the past.A researcher
may have collected the data for a particular project, then made it available to be used
by another researcher. The data may also have been collected for general use with no
specific research purpose like in the case of the national census.Secondary data
collected for this study was through Journals,Newspapers,Websites.

4.2 Tools

The primary data of this study was collected through a survey questionnaire.The data
collected through questionnaire was then analyzed. The secondary data was mainly
collected through various journals and websites.

4.3 Sample Size

The sample size is a term used in market research for defining the number of subjects
included in a sample size. By sample size, we understand a group of subjects that are
selected from the general population and is considered a representative of the real
population for that specific study.The respondents takes for this study is 80 including both
men and women

4.4 Research area

The area selected for conducting the research was vasai.Vasai is a historical place and
city near Mumbai’s western suburbs located in Palghar district.

4.5 Data Presentation

The data after analyzing is presented in pie chart format.

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 Chapter 5-Data Analysis

Q1.Age

Number of responses:80 responses

Particulars Responses
20 to 25 40
25 to 30 23
30 to 35 10
35 and above 7

9%

12%

50%

29%

15 to 25 25 to 30 30 to 35 35 and above

• It can be observed that 50% of the respondents fall under the age group of 15
to
25.
• 29% fall under the age group of 25 to 30.
• 12% fall under the age group of 30 to 35.
• 9% respondents are 35 and above.

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Q2. Your interest in purchasing an electric vehicle from any manufacturer.

Number of responses:100 responses

Particular Responses
Extremely interested 48
Very interested 18
Not so interested 14

18%

22%
60%

Extremely Interested Very Interested Not so Interested

• It can be observed that 60% of respondents are interested in purchasing an

electric vehicle
• 22% are very interested
• 18% are not so interested

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Q3. What would be the top most important feature you would look for when
purchasing an electric vehicle?

Number of responses:75 responses

Particular Responses
Charging Speed 28
Enviormental Cost Reduction 25
Safety 10
Range per charge 12

16%

38%

13%

33%

Charging Speed Enviormental Cost Reduction Safety Range per charge

• It can be observed that 38% of the respondents purchase an electric vehicle for
charging speed
• 33% purchase for enviormental cost reduction.
• 13% purchase for safety
• 16% purchase for range per charge

Q4. Are you interested in TESLA e-vehicle?

Number of responses:80 responses

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 Particular Responses
Yes 49
No 31

39%

61%

Yes No

• It can be observed that 61% respondents said yes

• 39% said no

Q5. How do you know TESLA

Number of responses:80 responses

74
 Particular Responses
Auto Show 33
Website 19
Socialmedia 12
Friends 16

20%

41%

15%

24%

Auto Show Website Socialmedia Friends

• It can be observed that 41% respondents know tesla from auto show
• 24% know tesla from website
• 15% know tesla from social media
• 20% know tesla from friends

Q6. Do you or anyone you know own a Tesla product?

Number of responses:80 responses

Particular Responses
Yes 35
No 45

75
 44%

56%

Yes No

• It can be observed that 44% respondents said yes.

• 56% respondents said no.

Q7. Would you prefer to buy an electric vehicle over a gasoline vehicle disregarding
cost?
Number of responses:79 responses

Particular Responses
Yes 58
No 21

76
 27%

73%

Yes No

• It can be observed that 73% respondents said yes.

• 27% respondents said no

Q8. How do you think of TESLA?

Number of responses:80 responses

Particular Responses
High technology 52
Luxury 20
Reveal personality 8

77
 10%

25%

65%

High technology Luxury Reveal personality

• It can be observed that 65% of respondents think tesla is high technology.

• 25% think it is luxurious.
• 10% think it reveals personality.

Q9. What price are you willing to pay for Tesla?

Number of responses:80 responses

Particular Responses
30 Lakhs 35
45 Lakhs 30
60 Lakhs 15

78
 19%

44%

37%

30 Lakhs 45 Lakhs 60 Lakhs

• It can be observed that 44% respondents said 30 Lakhs

• 37% respondents said 45 lakhs
• 19% respondents said 60 lakhs

Q10. What do you like most in tesla?

Number of responses:80 responses

Particular Responses
Design 23
Features 32
Comfort 12
Service 13

79
 16%

29%

15%

40%

Design Features Comfort Service

• It can be observed that 40% of the respondents like the features of tesla.
• 29% like the design
• 16% like the Service
• 15% like the comfort

Q11. Would you prefer tesla over other brands?

Number of responses:80 responses

Particular Responses
Yes 60
No 20

80
 25%

75%

Yes No

• It can be observed that 75% respondents said yes.

• 25% respondents said no.

Q12. Which Tesla model do you like more?

Nimver of responses:80 responses

Particular Responses
Model S 21
Model Y 13
Model 3 18
Model X 28

81
 26%
35%

16%

23%

Model S Model Y Model 3 Model X

• It can be observed that 35% of the respondents like Model X.

• 26% like Model S.
• 23% like Model 3.
• 15% like Model Y.

Q13. Does Tesla satisfy your need for an E-vehicle?

Number of responses:80 responses

Particular Reponses
Yes 60
No 9
Maybe 11

82
 14%

11%

75%

Yes No Maybe

• It can be observed that 75% respondents said yes.

• 11% respondents said no.
• 14% respondents said maybe.

Q13. How is tesla's aftersales service?

Number of responses:80 responses

83
 Particular Responses
Excellent 37
Good 23
Fair 14
Poor 6

8%

17%

46%

29%

Excellent Good Fair Poor

• It can be observed that 46% respondents said Excellent.

• 29%respondents said good.
• 17% repondents said fair.
• 8% respondents said poor.

Q14. Will you recommend Tesla to others?

Number of responses:80 responses
Particular Responses

Yes 72

No 8

84
 10%

90%

Yes No

• It can be observed that 90% of respondents said they will recommend tesla to
others.
• 10% respondents said no.

Chapter 6-Findings and Recommendations

6.1 Findings

85
• It can be concluded that 50% of the respondents fall under the age category of
15 to 25 years.

• 60% of the respondents ar extremely interested in purchasing a electric vehicle

from any manufacturer.

• By the research conducted it shows that 38% respondents look for better
charging speed before purchasing an electric vehicle.

• It can be concluded that 61% of the respondents already know about tesla.

• It can be concluded that the majority of the respondents that is 41% knows
tesla from the auto show.

• It can be concluded that 56% of the respondents does not own a tesla product
or know anyone who own’s one.

• It shows that 73% of the respondents would prefer to buy an electric vehicle
over a gasoline vehicle disregarding cost.

• It can be concluded that 65% of the respondents think tesla is high technology
25% think it is luxurious and 10% think it reveals personality.

• It can be concluded that 44% of the respondents are willing to pay 30 Lakhs
for tesla.
• By the research conducted it shows that 40 % of the respondents like the
features of tesla 29% of the respondents like the design 16% like the service
that tesla provides and 15% like the comfort.

86
 • It can be concluded that 75% of the resopondents will prefer tesla over other
brands.

• 35% of the respondents like the tesla model X 26% like the model S 23% like
the model 3 and 15% like the model Y.

• It can be concluded that 75% of the respondents said yes tesla satisfies their
need for an electric vehicle.

• It can be concluded that 46% of the respondents rates tesla’s aftersales service
as excellent.

• It can be concluded that 90% of the respondents will recommend tesla to

others.

6.2 RECOMMENDATIONS

• The company should introduce more of their products to the market

• The company should be Be more transparent about the things that matter.

87
 • The company should Consider separating the mobility and the car business.

• Tesla should start advertising of their products more into newpapers and on
local tv channels.

• More stores of tesla should be started in the international markets as there is

more demand globally.

• The company must continue its significant investments in research and

development (R&D) to produce technologically advanced products that are
competitive.

• The company should expand their line of products to be applicable to a wide

range of consumers especially low-income consumers.

Chapter 7- Conclusion

There is no doubt that Tesla is a disruptor of the automotive industry. The company is
reinventing the way cars and technology integrate, bringing to its customers a

88
sustainable and energy efficient transportation solution. Considering the current
climate scenario in the entire world, we need to reduce emissions and start
contributing to climate change. According to the Pew Research Center, 88% of all
Americans own a car. Electric vehicles can be a deciding factor for the world’s global
warming crisis.

Considering the importance of Tesla’s innovative technology and the impressive

popularity of the brand, the company continues to see a huge demand for its product
and it needs to improve its logistics and supply chain processes to start delivering its
products as expected.

From a management improvement perspective, the company should focus on quality,

time, costs, and customer relation measurements so it can track better its data,
adjusting production to current levels of supply and demand and stop being
overambitions. Related to its supply chain, the company could focus on establishing
long lasting relationships with its suppliers, reporting properly about demand levels
to avoid delays. Tesla also suffers with inventory management due to its limited
warehouse space in relation to expected sales. The company should expand its
warehouse space to accommodate all expected sales.

Tesla is a fascinating company with unique products and relevant impact to the
environment. The company needs to start addressing its inventory and supply chain
processes issues if it wants to remain the “most-loved auto brand” in the world

Chapter 8-Bibliography

• https://en.wikipedia.org/wiki/Tesla,_Inc.
• https://growfusely.com/blog/teslas-marketing-strategy-lessons/

89
 • https://www.forbes.com/sites/forbesagencycouncil/2020/12/10/eight-
digitalmarketing-lessons-we-can-learn-from-tesla/?sh=680a19ee48c8
• https://iide.co/case-studies/tesla-marketing-strategy/
• https://www.marketing91.com/marketing-strategy-of-tesla/
• https://www.talkwalker.com/blog/tesla-marketing-strategy-social-ceo
• https://www.tesla.com/
• https://bstrategyhub.com/tesla-swot-analysis/
• https://www.indigo9digital.com/blog/teslamarketingstrategy
• https://www.reuters.com/companies/TSLA.O

Annexure

1.Your Age
• 20-25

90
 • 25-30
• 30-35
• 35 and above

2. Your interest in purchasing an electric vehicle from any manufacturer.

• Extremely Interested
• Very interested
• Not so interested

3. What would be the top most important feature you would look for when
purchasing an electric vehicle?
• Charging Speed
• Enviormental Cost Reduction
• Safety
• Range per charge

4. Are you interested in TESLA e-vehicle?

• Yes
• No

5. How do you know TESLA

• Auto Show
• Website
• Socialmedia
• Friends
6. Do you or anyone you know own a Tesla product?
• Yes
• No

7. Would you prefer to buy an electric vehicle over a gasoline vehicle disregarding
cost?
• Yes

91
 • No

8. How do you think of TESLA?

• High technology
• Luxury
• Reveal personality

9. What price are you willing to pay for Tesla?

• 30 Lakhs
• 45 Lakhs
• 60 Lakhs

10. What do you like most in tesla?

• Design
• Features
• Comfort
• Service

11. Would you prefer tesla over other brands

• Yes
• No
• Maybe

12. Which Tesla model do you like more

• Model S
• Model Y
• Model 3
• Model X

13. Does Tesla satisfy your need for an E-vehicle?

• Yes
• No

92
 • Maybe

14. How is tesla's aftersales service?

• Excellent
• Good
• Fair
• Poor

15. Will you recommend Tesla to others?

• Yes
• No
• Maybe

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