Tesla's strategy has been to emulate typical technological-product life cycles and initially enter the automotive market with an expensive, high-end product targeted at affluent buyers. As the company, its products, and consumer acceptance matured, it is moving into larger, more competitive markets at lower price points.[61][62]
Aiming premium products at affluent "thought leaders" is a very well-known business strategy in Silicon Valley and the global technology industry, where prices for the first versions of, for example, cellular phones, laptop computers, and flat-screen televisions start high but drop with subsequent products as the technology matures and production volumes increase.[63] According to a blog post by Musk, "New technology in any field takes a few versions to optimize before reaching the mass market, and in this case it is competing with 150 years and trillions of dollars spent on gasoline cars."[64]
While the Roadster's base price was US$109,000,[65] the Model S's base price was US$57,400,[22][66] and the company plans to launch a US$30,000 vehicle, codenamed BlueStar.[67]
One of Tesla's stated goals is to increase the number and variety of electric vehicles (EV) available to mainstream consumers by:
selling its own vehicles in company-owned showrooms and online;[68]
selling powertrain components to other automakers[69][70]
serving as a catalyst and positive example to other automakers[71][72]
Tesla focuses on pure electric propulsion technology, even for larger vehicle segments and ranges beyond 200 miles. Musk won the 2010 Automotive Executive of the Year Innovator Award for hastening the development of electric vehicles throughout the global automotive industry.
Tesla's strategy has been to emulate typical technological-product life cycles and initially enter the automotive market with an expensive, high-end product targeted at affluent buyers. As the company, its products, and consumer acceptance matured, it is moving into larger, more competitive markets at lower price points.[61][62]
Aiming premium products at affluent "thought leaders" is a very well-known business strategy in Silicon Valley and the global technology industry, where prices for the first versions of, for example, cellular phones, laptop computers, and flat-screen televisions start high but drop with subsequent products as the technology matures and production volumes increase.[63] According to a blog post by Musk, "New technology in any field takes a few versions to optimize before reaching the mass market, and in this case it is competing with 150 years and trillions of dollars spent on gasoline cars."[64]
While the Roadster's base price was US$109,000,[65] the Model S's base price was US$57,400,[22][66] and the company plans to launch a US$30,000 vehicle, codenamed BlueStar.[67]
One of Tesla's stated goals is to increase the number and variety of electric vehicles (EV) available to mainstream consumers by:
selling its own vehicles in company-owned showrooms and online;[68]
selling powertrain components to other automakers[69][70]
serving as a catalyst and positive example to other automakers[71][72]
Tesla focuses on pure electric propulsion technology, even for larger vehicle segments and ranges beyond 200 miles. Musk won the 2010 Automotive Executive of the Year Innovator Award for hastening the development of electric vehicles throughout the global automotive industry.
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