Ch 7 Business Marketing

Tesla Motors is a business to consumer marketer at the time when it comes to the Model S. According to Forbes.com in order for Tesla motors to effectively sell cars they must start a dealership network.

"This “buy a car over the Internet” business is fine when you’re only trying to sell 20k luxury sedans a year, but it’s never going to move 1-2 million cars. Tesla needs a dealership network (something Musk has said himself) or a massive change in franchise laws in all 50 states in order to grow."

The car is relatively expensive and would not be bought for commercial use. The company is planning on making a affordable car that may be used to market for business use. Tesla also markets electric powertrain components, including lithium-ion battery packs, to other automakers, including Daimler and Toyota. Tesla has an alliance with a company called SolarCity. The Chairperson of Tesla Motors is the Same for Solar City. The company Manufactures solar panels and installs them in the models. They also install high powered outlets into a home before the Model S is delivered to the consumer. Tesla made a deal that Panasonic’s automotive grade lithium-ion battery cells will be used in Tesla’s premium electric sedan to build more than 80,000 vehicles over the next four years. the company says they have more supply problems then demand problems. The company continues to work out kinks in its factories, to get better deals from suppliers, and to try and improve gross margins by becoming more efficient overall. On the Tesla website it says they are careful of who they do business with and their suppliers are strictly screened.

"Tesla is committed to ensuring that its suppliers do not use slave labor or engage in human trafficking. Tesla does not, and will not, tolerate the use of slave labor in the manufacture of its products and does not, and will not, accept products or services from suppliers that engage in human trafficking in any form. Human trafficking and slavery are crimes under state, federal and international law. These crimes exist in countries throughout the world."