In recent years Tesla has revolutionized the automotive industry. Taking over major brands in Europeans and Americans. Yes, there is a Tesla and that is BYD. Unlike Tesla, BYD is also famous for plug-in hybrid and electric vehicles. Tesla led by Elon Musk used deep thinking and strategies to make its car company brand worldwide.
This article will focus on Tesla’s influence on domestic car makers which focuses on the supply
The growth of Tesla: Disrupting local car makers
Tesla was started in 2003 focusing on the aim of sustainable energy. With other car brands such as Toyota Mercedes and American car brands which at that time ran on fuel this company focused on electric vehicles which were a unique step ever made by them.
Tesla’s strategy of changing world dynamics in car manufacturing forced other car makers to shift toward green energy.
Direct sale to the customers
Unlike all other companies that find dealerships to reach their customers, Tesla does the opposite of it by selling their cars on their website and the showroom. Which in return Tesla benefits where there is all control of their car Legacy in terms of pricing and understanding of customers. From this, the other car makers are under pressure to revise their laws and think about some alternatives from which in the end they will benefit.
Supply chain control
Like other manufacturers which usually outsource the components or spare parts for example to China for more outcomes as there is less labour cost Tesla is an expert in this as they make in the industry less but some may be outside this includes our battery and software. Tesla gig factories such as Shanghai One produce necessary battery cell for them to be made faster while the other faces delay or other problems.
Tesla as a Brand
Elon Musk, who is currently the richest person on the planet Earth itself, is a brand owned by big Companies such as SpaceX, X(Formerly Twitter, and Tesla. By using social media he is a celebrity. If we talk about Tesla its Innovation of luxurious cars and unique gives one an edge to generate more sales. Tesla as a brand is now known in every corner looking at other manufacturers they are now heavily investing in their EVs.
Cost Effective
This company’s main aim is cost reduction with low prices making it more attractive to the customers. With its mass production such as in China and batteries production also tesla has reduced its prices. This strategy also gives Tesla a boost making it a bit more challenging for other car companies who sell at high prices and also face challenges in production. Brands cars are now shifting their ways by investing in partnering with electric vehicles and batteries such as China battery Catl.
Environmental factor
Tesla’s main aim is for clean energy without polluting the environment. As the world is shifting towards clean energy many developed countries are taking out necessary steps to control emissions. Local Automakers running on fuel are facing strict pressure from the government to change their vehicles to hybrid or electric. Tesla has already gained fame in it where it outpaced car brands.
The future of Automotive industry
Tesla’s deep thinking, planning and understanding of the world’s future, which it still does now by releasing robots and fully self-driving in the iRobot show, gives a huge lesson that Tesla is moving with future events in which chances are that it may happen. Now it is clear that the future is of hybrid and EV vehicles. The one who adopts it will succeed and the one who doesn’t will fall behind.
Conclusion
Tesla now remains the leader in the automotive industry by changing the whole Industry’s future with its master plan. From advanced software to the customer-to-customer service it has made it unique and a threat to other Legacy car brands.
