Provide a brief description of the company you selected.

Tesla is an electric vehicle and clean energy company based in Austin, Texas. Tesla designs and manufactures electric cars, battery energy storage from home to grid-scale, solar panels, and solar roof tiles.Tesla is one of the world's most valuable companies, with a market capitalization of nearly US$1 trillion. The Roadster sports car was Tesla's first car model produced2009. These Model S sedans followed in 2012, Model X SUVs in 2015, Model 3 sedans in 2017, and Model Y crossovers2020. TheModel 3 is the all-time best-selling in June 2021; the Model 3 became the first electric car in the world to sell one million units.

Please explain how you think the company could benefit from increasing its market share.

Tesla's long-term objective is to grow its vehicle deliveries by 50% every year. It has consistently increased sales at a pretty high rate beyond 2020. A 50% increase in revenue would translate into close to 4% of the market in the United States and Canada and over 2% in Europe and China by 2022. In this context, a battery electric vehicle (BEV) is defined as an electric vehicle rather than a hybrid or plug-in hybrid (Kane, 2022).

The automotive industry has long neglected electric cars, but it appears that the window of opportunity is rapidly closing. OEMs are likely to transition to BEVs within a few years(Kane, 2022). As the competition increases, it will be too late and difficult to switch by the end of this decade.

Those companies that are still involved in hydrogen seem the most disconnected from reality. There is almost no refueling infrastructure for hydrogen cars, except few markets. Hydrogen cars are more expensive and less efficient than BEVs. However, the all-electric car manufacturer achieves an automotive gross margin of approximately 30% (Kane, 2022).

Justify at least three recommendations that the company could incorporate to increase its market share.

1. The company could introduce changeable batteries in its design. That way, users would not have to try to find charges stations.
2. Create changing stations, similar to gas stations around the country, that could allow consumers to take the vehicle on long trips without stopping constantly. These stations could serve as battery-changing stations and allow the cars to be serviced.
3. Allow customers who use these stations to use them at a discount. That way, not only does Tesla show that they want their products to run well, but Tesla can keep an eye out for any vehicles issues and maintain the batteries.

References

Kane, M. (2022, January 27). Tesla Reveals How Quickly It Increased Its Market Share. InsideEVs. Retrieved February 9, 2022, from https://insideevs.com/news/563416/tesla-market-share-growth-2021/

Respond to your colleagues' posts in one or more of the following ways:

• Ask a question about why the company your colleague selected could benefit from increasing its market share.
• Provide an example of another company that implemented (or failed to implement) a recommendation that your colleague provided.
• Offer an additional recommendation for how the company your colleague described could increase its market share, including a rationale for your recommendation.