Tesla now just has to set the final price that the buyer will pay. The decision phase occurs before a potential customer searches for a car to buy. This is what Tesla (tesla stock) wants to focus on. For this reason, what is outsourced to the shop is to provide buyers with a new driving experience, where sellers are not paid in quantity, but their salaries are fixed. The gallery’s strategic location (a busy place inside a shopping mall) helps customers think about buying a Tesla car in their daily life. You can also book your car online by making a deposit.
There is no way to negotiate tag prices through this channel as with traditional distributors. Another major difference from all traditional players in the electric vehicle industry is that Tesla manufactures cells and battery packs in-house. Unlike other automakers in this segment, Tesla has partnered with Panasonic to create its own cells and batteries to meet their needs and sell them to other players.
This is possible when GigaFactory is running. Following Tesla’s lead, many other automakers have begun building their own battery cell manufacturing facilities or partner with other players. Nissan will build them in the UK. Ford is expanding battery research and development in partnership with the University of Michigan. Many of them are adding internal markets to their core businesses, as Tesla did at Powerwall.
Mercedes offers competitors to the Tesla Powerwall, which will be introduced in 2016. BYD offers similar products for the B2B market. Another innovation Tesla has made to its traditional business model is Tesla’s infrastructure and battery replacement services. The main limitation of all-electric vehicles to date has always been low distances, so cars are only suitable for short distances and have been mainly limited for use in cities. By integrating the extensive compressor network with the ability to replace batteries in less than two minutes, Tesla reduces so-called range problems to zero and effectively compares Tesla vehicles with traditional vehicles in motion.
The area where the improvement began
Tesla’s car manufacturing plant situated in Fremont, California. It serves the US market and the Tilberg plant in the Netherlands (recently renovated and expanded) for the EU market. In this factory, components such as batteries and motors have been reassembled to meet European standards. The Tesla Model S is sold in two different power levels, 60kWh and 85kWh (two engines, one at the front and one at the rear), with a range of 370 km and 500 km. You can check its releases at https://www.webull.com/releases/nasdaq-tsla before investing in Tesla stock.
Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.