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Business As Level

Tesla's decision to lower EV prices aims to expand market share and enhance competitive positioning in the electric vehicle industry. While this may reduce margins per vehicle, increased sales could lead to overall revenue growth, necessitating effective cost management and production scaling. The company's marketing strategies focus on minimal traditional advertising and direct sales, leveraging technological innovation and sustainability to maintain a competitive advantage.

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11 views8 pages

Business As Level

Tesla's decision to lower EV prices aims to expand market share and enhance competitive positioning in the electric vehicle industry. While this may reduce margins per vehicle, increased sales could lead to overall revenue growth, necessitating effective cost management and production scaling. The company's marketing strategies focus on minimal traditional advertising and direct sales, leveraging technological innovation and sustainability to maintain a competitive advantage.

Uploaded by

charvikrupanio7
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

Impact of Tesla’s

Announcement of lowering
the prices of its EV’s
BUSINESS
INTRODUCTION

Let's look at the implications on the business of Tesla's recent decision


to significantly decrease the pricing of its electric automobiles
internationally.
MARKETING
• Market expansion: Lowering pricing makes Tesla’s EVs more
accessible to a larger audience, increasing market share and
brand loyalty among new consumer categories.
• Competitive positioning: This price approach can increase
competition in the EV industry, compelling other
manufacturers to reassess their pricing strategies and
increasing Tesla’s position as the market leader.
FINANCE
• Revenue impact: While cutting prices may result in lower
margins per vehicle, the increasing number of sales might
balance this, resulting in an overall revenue growth.
• Cost management: Tesla must control manufacturing costs
properly in order to remain profitable despite price drops.
This might include improving supply chains and
enhancing industrial efficiency.
OPERATIONS
• Production scaling: Tesla needs to enhance factory output
and ensure a consistent supply of raw materials to satisfy
the anticipated rise in demand.
• Supply chain management: Lowering prices may lead to
increased demand, which would put pressure on the
supply chain, in order to fulfill the increased
manufacturing needs it will be essential to guarantee a
consistent supply of raw materials.
Tesla’s marketing
strategies and
competitive advantage
.
Marketing strategies
• Minimal traditional advertising: Tesla does not spend a lot
of money on radio, print, or television advertising. Rather,
they use social media, word of mouth, and CEO Elon
Musk’s brand.
• Direct sales model: By avoiding the traditional dealership
model, Tesla sells to customers directly via its own retail
locations and online. This helps for control over the
customer experience and also collects feedbacks.
Competitive advantage
• Technological innovation: With large expenditures in
software, autonomous driving, and battery technology,
Tesla is a pioneer in EV technology. When compared to
several competitors, its car provide better features,
performance, and range.
• Sustainability and brand image: The company’s dedication
to sustainability is demonstrated by projects like energy
storage solutions and solar energy products, which
enhance its reputation as a pioneer in the field of green
technology.

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