Did it make sense for Tesla to enter the market with a high -end car, and plan a transition path to a mass - market car ? Throughout history , multiple companies have tried and failed to compete directly with mass -market motor giants such as GM , Ford , and Nissan . Tesla Motors took a different approach to entering the market by making their debut with a high -end all electric vehicle (AEV ) named the Tesla Roadster. Although risky, Tesla's decision to enter the market with a high-end car before transitioning to mass -market paid off in providing the company with a strong start . Tesla Motors was founded on the basis of creating a sports car that was purely electric, and therefore better for the environment than a hybrid . Due to the niche market , Tesla needed something that would help the Roadster stand out as more than just environmentally friendly . As it originally stood , the Roadster would appeal only to the eco -wealthy and the company would not fare well competing against well -established and trusted motor companies . The multiple costly upgrades the Roadster experienced in development transformed it from being an expensive , but unattractive mass -market car that would likely flop into a very expensive , and outstanding high -end car that attracted needed attention for Tesla while retaining the original environmentally friendly goal . The release of the high -end Roadster was met with great astonishment , and was reserved and purchased by several celebrities with multiple means to voice their views on the Roadster and the company. With access to television and magazine reviews , the celebrity appeal of the Roadster would undoubtedly help Tesla to make a name for themselves , and this would greatly aid the company as they chose to stay away from traditional marketing strategies . Overall it was a more expensive project than originally anticipated , but the