PAPER FOR INTERNATIONAL MARKETING:

ELECTRIC CARS
BY TESLA MOTORS

Submitted by:

Bruks
BM 236

THE TREND OF THE FUTURE:
ELECTRIC CARS BY TESLA MOTORS

I. SITUATIONAL ANALYSIS

The concern for the environment has never been bigger than at the turn of the century. The growing acceptance of global warming, coupled with the growing green marketing galore gave impetus for the clamor for major auto companies to build a better and more affordable electric car. This plus the unpredictable oil price spikes and hikes, is intensifying the race to build the ideal car of the future at a greater height.

The poster child of the independent electric car movement has been Tesla Motors. When the company
The other limitation beside range is cost. Electric cars have historically suffered from extreme lameness, largely because most attempts at building electric cars were aimed at the mid-price or low-end car market. The result was a host of three-wheeled bubble cars and other nerd-mobiles. Tesla is the first company ever to prove that for a certain segment of the market, an electric car can be better than its gas-powered cousin. Right now, given the cost of lithium ion cells, this market is a relatively small segment of the high-end sports car market.

C. OPPORTUNITIES

As battery technology improves—simultaneously increasing energy storage and reducing cost—major automakers are expected to begin introducing a new generation of electric cars with range from 300 to 400 miles that’s more acceptable and affordable to the driving public.

Other strategies to limit cost and lower “barrier to entry,” maybe approached two ways: (1) limiting the electric vehicle to three wheels (so it can be legally classified as a motorcycle) or (2) limiting the vehicles legal top speed to 25 miles per hour (so it can avoid highway crash testing). Both strategies have been tried with limited success thus far.

D. THREATS

A hybrid car which is fueled by gasoline and uses a battery and motor to improve efficiency poses the greatest threat to the electric car beside the prohibitive cost of acquiring one. Toyota Prius is the