The market for fully electric vehicles is on the rise now. The new regulations on safety and vehicle emissions, shifting customer needs and expectations, and technological advances are the push behind this escalation. A large part of the credit of the mainstream acceptance and excitement for electric cars goes to Tesla Motors Inc. Musk had conveyed his mission that he intends to bring compelling mass-market electric cars to market as soon as possible. He foresees to accelerate the dawn of sustainable transport. To execute his plan effectively he has introduced a very unique yet very successful business model for Tesla that has never been seen in the automobile market before.
Tesla took an inimitable approach to while entering the automotive market. Tesla focused on giving a compelling car instead of mass marketing an affordable and probably boring car.
Musk believed that for a startup company like Tesla, with no prior experience in building a car with just a single technology iteration and no economies of scale, mass marketing their first product was going to be expensive, so deciding to build a sports car was the best way out as it was the best chance of being competitive with its gasoline alternatives. Tesla’s unique business model is based on three pillars namely selling, servicing, and charging its electric vehicles.
- Direct sales: where other automakers sell their products through franchised dealerships, Tesla opted for direct sales. Tesla holds an international network of company-owned showrooms and galleries. Owning the sales channel, Tesla reaps the advantage in the speed of its product development creating a better customer buying experience. Tesla showrooms exhibit no conflict of interest. Customers only transact with Tesla-employed sales and service staff. Including the showrooms, Service Plus centers, and service facilities. Tesla has also made use of Internet sales—consumers can customize and purchase a Tesla online.
- Service: Tesla combined its sales centers with service centers. Opening a service center in a new area corresponds with increased customer demand. Being able to charge or service their vehicles at the service centers or the Service Plus locations customers get a sense of confidence and quality assurance for their product. Tesla Rangers also offer mobile technicians who can service vehicles from your house. Sometimes, not requiring onsite assistance at all. The Model S wirelessly uploads data for technicians to view and fix problems online remotely.
- Supercharger network: Tesla created its own network of Supercharger stations, fully charging Tesla vehicles in about 30 minutes for free. This significantly speeds up the rate of adoption for electric cars. Tesla plans to extend the network of Supercharger stations in their potential markets like the United States, Europe, and Asia.
Man Accidentally Buys 28 Tesla Cars Worth 1.4 Million Euros
Tesla cars have earned a massive fan following around the world. Having provided this much ease of mind to buyers and being talked wildly as much for being technologically ahead of the competition as an all-electric. However trying to perfect their operations, Tesla has recently suffered a glitch when a buyer tried to purchase its Model 3, online. A German man did unintentionally purchase 28 new Tesla Model 3 cars while trying to buy just 1 unit of the car.
According to a Reddit “Ballon Man’s” post which has been flashed in global news outlets, on June 17, 2020, the man fortuitously spent 1.4 million euros on 28 Tesla cars. The post by the man’s son who became the victim of this online purchase glitch explained how the Tesla website caused the audaciously expensive error.
The post highlights that the man was attempting to replace his old Ford Kuga with a Tesla Model 3. A slew of offers and incentives available in Germany for EV purchases which have doubled during COVID- 19 compelled the man to choose a Tesla. Having filled in all details and adding the desired addons, the customer clicked the ‘Confirm’ button but somehow received no confirmation message. So he repeatedly pressed the button, apparently adding another Model 3 new unit with every click. In all, the 28 clicks resulted in 28 purchases with the final order amount coming to the exorbitant amount.
While Tesla never offers refunds on products once purchased, this case was treated as an exception after the man contacted the company. The 2,800 euros in deposits which is 100 euros per car were also refunded.
Online sales channels have supported automakers in the current times of Covid-19. But even such smart technology, is not free from its limitations.