TABLE OF CONTENT

1. Introduction
2. 3I Model
a) Inspiration
b) Indeation
c) Implementation
3. How empathy can influence persona development?

References
Appendix
 1. Introduction
Tesla, Inc. is a corporation that designs, develops, produces, and distributes all-electric vehicles,
as well as energy generating and storage technologies (Forbes, 2024). According to Statista
(2024), Tesla's revenue increased to about 96.8 billion US dollars in the fiscal year 2023, up 18.8
percent from the previous year. However, Tesla has been overtaken by BYD of China when BYD
sold 525,409 battery electric cars (BEVs) in the three months ending December 31, 2023, while
Tesla sold just 484,507 units (Isidore, 2024).

The goal of this proposal is utilizing the 3I Model of Design Thinking (Appendix A) to examine
Tesla's difficulties and recommend critical solutions for adapting to market dynamics. Moreover,
this project also offers insight on how empathy affects your personality development.

1. 3I Model
a) Inspiration
The worldwide electric vehicle market share has increased dramatically over the last decade, and
this trend is likely to intensify in the next few years. In 2015, there were only approximately 1
million electric vehicles on the road; in 2022, there was 28 million. This is a huge number that is
extremely rapidly increasing (Virta, 2022). Previously, Tesla led the sector, but it was recently
surpassed by the Chinese powerhouse BYD. In Q4 2023, Tesla had a market share of only 16%,
compared to 18% for BYD (Counterpoint, 2023). To obtain a big market share in this field and
compete for industry leadership, Tesla must employ more complicated and diversified strategies
that capitalize on unique industry traits and preferences.

Within the Inspiration pool for Tesla (Appendix 2), it appears that opportunities also include
numerous problems and limitations, which have a substantial impact on client purchase
decisions. Consumer shopping habits have shifted dramatically in recent years, with many
prepared to pay extra for ecologically friendly items. 58% of customers polled stated they would
be prepared to pay more for items that are deemed sustainable or ecologically friendly.
Furthermore, 74% of poll respondents stated they are more inclined to buy from a firm that is
open about its sustainability efforts (Specright, 2023). The most obvious potential when
consumer purchasing behavior changes in this situation is customer desire, which allows Tesla to
create and launch goods. However, there is one significant drawback to this opportunity: the
tough market. Harsh in terms of fastidiousness and meticulous deliberation in consumer purchase
decisions, as well as the need to continually alter in order to satisfy customers and remain in a
sector with numerous rivals. In another view, Tesla also has a scarcity of charging stations for its
goods. For example, in Australia, there is only one charging station for every 35 electric
automobiles, compared to the global average of 10 (VTV, 2023). Additionally, New York, the
most populated city in the United States, is experiencing a charging station issue (VnExpress,
2024). This has recently posed a significant challenge to Tesla's position.

There are several other causes for the standstill in Tesla's commercial operations (Appendix 3).
These are mostly due to Tesla's product pricing being far higher than those of BYD. For
example, in China's market, the price of BYD vehicles ranges between 78,000 and 96,000 CNY,
but Tesla goods are several times more expensive than the price of BYD; RWD Model 3 cars
(Tesla's cheapest car line in China), which costs over 245,900 CNY. There are several reasons
why the cost of Tesla goods is so high. It is hard to ignore the reality that Tesla must pay
exorbitant pricing for raw materials to construct the vehicle. Furthermore, Tesla had issues when
it lost government backing for tax policy. These factors contribute to Tesla goods being relatively
pricey and lead to the decrease in sales revenue.

b) Ideation
Appendix 4 was created to show more about perception of customers and based on Tesla's
challenges, potential in the electric car industry, a comprehensive development plan should
prioritize the following areas. To begin, Tesla should create an affordable electric vehicle lineup
to appeal to the general public. To do this, Tesla should optimize raw material sources, favoring
self-production to save costs and prevent price disparities. Furthermore, cooperating with other
brands also helps Tesla improve customer experience and attract new customer files. Not only
that, but Tesla must also prioritize personnel acquisition and retention.

c) Implementation
The action plan outlines three key aims for Tesla's growth: growing brand recognition and
awareness, and enhancing customer service (Appendix 5). This strategy will be implemented
over a five-year period, requiring active participation from all divisions within the business.

Notably, Tesla should be cautious about product inspection. In 2023, Tesla issued a recall of
nearly all electric vehicles in the United States, totaling 2.2 million units, owing to warning light
issues (VCCorp.vn, 2024). Tesla previously recalled roughly 4,000 electric vehicles owing to
issues with the accelerator pedal. As a result, Tesla should exercise greater caution to prevent
losing consumer trust, the difficulty of recalling vehicles, and offering a positive customer
experience. These apparently little things are the reason Tesla lost its status as an industry leader.

3. How empathy can influence persona development?

By using empathy, listening to customer feedback, and direct/indirect surveys may help Tesla
and other organizations uncover the challenges that their consumers are experiencing. For
example, in the case of Tesla, utilize empathy to determine whether buyers believe their goods
are overpriced or that charging station infrastructure is not generally available. Observing use
patterns and analyzing data from social networks may help you better understand client
expectations, such as a desire for new technology or cost reductions. Creating empathy-based
personas not only improves product and service design, but it also personalizes the customer
experience, enhancing happiness and engagement with the company. As a result, it increased
customer satisfaction, gained more loyal customers, and strengthened its position in the
worldwide industry.
 References

Counterpoint. (2023, August 31). Global Electric Vehicle Market Share, Q2 2021 – Q1 2023 –

COUNTERPOINT RESEARCH. Www.counterpointresearch.com.

https://www.counterpointresearch.com/insights/global-electric-vehicle-market-share/

Forbes. (2024). Tesla on the Forbes World’s Best Employers List. Forbes.

https://www.forbes.com/companies/tesla/

Isidore, L. H., Chris. (2024, January 2). China’s BYD is selling more electric cars than Tesla |

CNN Business. CNN.

https://edition.cnn.com/2024/01/02/cars/china-byd-ev-sales-increase-tesla-intl-hnk/index.

html#:~:text=BYD%20sold%201.57%20million%20electric

Specright. (2023, November 15). Consumers Prioritize Sustainable Products and Transparency

from Companies. Specright.com.

https://specright.com/press-releases/survey-reveals-consumers-prioritize-purchasing-sust

ainable-products-and-desire-greater-transparency-from-companies-on-sustainability-prog

ress

Statista. (2024, February 29). Tesla’s Revenue 2008-2022 | Statistic. Statista; www.statista.com.

https://www.statista.com/statistics/272120/revenue-of-tesla/

VCCorp.vn. (2024, February 3). Vận đen đeo bám Elon Musk, Tesla thông báo đợt thu hồi lớn

nhất trong lịch sử, gần như toàn bộ xe điện của hãng ở Mỹ bị ảnh hưởng. Cafef.

https://cafef.vn/van-den-deo-bam-elon-musk-tesla-thong-bao-dot-thu-hoi-lon-nhat-trong-

lich-su-gan-nhu-toan-bo-xe-dien-cua-hang-o-my-bi-anh-huong-188240202215749062.ch

n
Virta. (2022). The Global Electric Vehicle Market In 2022 – Virta. Www.virta.global.

https://www.virta.global/en/global-electric-vehicle-market

VnExpress. (2024, January 24). Tài xế xe điện ở Mỹ xếp hàng dài chờ vào trạm sạc.

Vnexpress.net; Báo VnExpress.

https://vnexpress.net/tai-xe-xe-dien-o-my-xep-hang-dai-cho-vao-tram-sac-4704146.html

VTV, B. D. T. (2023, May 19). Thiếu trạm sạc kìm hãm thị trường xe điện Australia. BAO DIEN

TU VTV.

https://vtv.vn/kinh-te/thieu-tram-sac-kim-ham-thi-truong-xe-dien-australia-20230519160

203169.htm
 APPENDIX

Appendix 1:
1.1 Electric cars roaming global roads in 2022.

1.2 EVs global market share.

Appendix 2: Inspiration tool

Appendix 3: Tesla’s Fishbone

Appendix 4: Customer persona & Empathy map
Appendix 5: Action Plan