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Tesla sets a precedent for the future of the automotive industry

April 14th, 2016

 

In the past several years and especially so far this year, Tesla Motors has been consistently setting the standard in the automotive industry as a company pushing for this tech savvy and energy efficient future.

 

Tesla recently revealed its design and features on the all new Tesla Model 3 Sedan, and made the car available for pre-order with a $1,000 deposit according to Tesla Motors website.

 

The electric car will have a battery life of 215 miles per charge and will go from zero to 60 mph in under six seconds. This vehicle seats five and has received a five star safety rating. The Model 3 carries a price tag of $35,000 and could be seen on the road as early as late 2017 reported USA Today.

 

While Tesla has received consistent criticism from outside critics and members of the automotive industry who believe that their business model of quality, environmentally conscious, hyper energy efficient vehicles is unsustainable, and targeting too narrow of a market, the Model 3 has received over 325,000 pre-orders, according to Tesla Motors website.

 

This metric has shattered any previously established precedent for pre-order in the industry and has far exceeded all predictions, made by Tesla Motors, for the vehicle’s early success.

 

According to Bloomberg, from the success of this pre-order period, Tesla is predicted to make $14 billion in future sales.

 

Prior to the unveiling of the Model 3 Sedan, USA Today and several other major news sites published pieces questioning Tesla’s ability to sell and market their cars.  As Tesla has very few physical retailers and sells through no third parties, a majority of their sales occur through an online medium.

 

Despite this new method of retail and product distribution, Tesla has completely shattered the industry standard for this kind of pre-order and exceeded most expectations.

 

Tesla’s success proves that people are willing to spend extra for a product with guaranteed quality that they believe in, reported USA Today.

 

Their business model goes beyond product loyalty and taps into the part of people that focuses on morals and values, sustainability, green power, and domestically produced.  Tesla isn’t just in the market to sell cars. It’s in the market to sell ideas.

 

Tesla is marketing this innovative idea of a technologically advanced and attainable future, and they’re packaging it in a wrapping that screams environmental sustainability, according to Bloomberg.  Tesla’s found a way to bottle this rosy idea of the future.

 

They’re selling a product that advertises personal affluence and optimistic environmental consciousness.

 

It should not come as a surprise that their cars will be flying out of the warehouse and onto the streets. With their innovative technological advances and efficient means of energy usage Tesla Motors will help to power the future.

 

Editor’s Note: Information from Bloomberg, USA Today and Tesla Motors Website was used in this report.