STRATICEC Tesla Q Q ... Tesla's Secret Strategy end of 2018, it had sold more than 250,000 of the Model S worldwide. Hoping for an even broader customer appeal, Tesla also TESLA INC., an American manufacturer of all-electric introduced the Model X, a crossover between an SUV and a cars-boasted a market capitalization' of some $60 billion family van with futuristic falcon-wing doors for convenient (in early 2019), an appreciation of more than 1,400 per- access to second- and third-row seating. The $100,000 start- cent over its initial public offering price in 2010. How can ing sticker price of the Model X is quite steep, thus limiting a California startup achieve a market valuation that ex- its mass-market appeal. Technical difficulties with its innova- ceeds that of GM, one of the largest car manufacturers in tive doors delayed its launch until the fall of 2015. By the the world, making some 10 million vehicles a year? The end of 2018, however, Tesla had sold more than 100,000 of answer: Tesla's secret strategy. In a summer 2006 blog en- the Model X globally try on Tesla's website, Elon Tesla also completed Step Musk, Tesla's co-founder 3 of its master plan. In 2016, and CEO, explained the the electric car maker un- startup's master plan: veiled the Model 3, an all- 1. Build sports car. TESLA electric compact luxury 2. Use that money to build sedan, with a starting price of $35,000. Many want-to-be an affordable car. Tesla owners stood in line 3. Use that money to build overnight, eagerly waiting for an even more affordable Tesla stores to open so they car. could put down their $1,000 4. While doing above, also deposits to secure a spot on provide zero-emission the waiting list for the Model electric power genera- 3-a car they had not even tion options. seen, let alone taken for a test The Tesla Roadster 2 set new records for a vehicle to be driven drive. As a result of this con- 5. Don't tell anyone.? on public roads: It goes from 0-60 mph in 1.9 seconds and from sumer enthusiasm, Tesla re- Let's see if Tesla stuck to 0-100 mph in 4.2 seconds, with top speeds of well above 250 ceived more than 500,000 its strategy. In 2008, Tesla in- mph. The base price of this newest Tesla, scheduled to launch in 2020, is $200,000. preorders before the first de- troduced its first car: the KYDPL KYODO/AP Images livery, and thus $500 million Roadster, a $110,000 sports in interest-free loans. Despite coupe with faster acceleration than a Porsche or a Ferrari. initial difficulties in scaling up production, deliveries of the Tesla's first vehicle served as a prototype to demonstrate Model 3 began in the fall of 2017. By the end of 2018, Tesla that electric vehicles can be more than mere golf carts. Tesla had delivered more than 100,000 of the Model 3 globally. To thus successfully completed Step 1 of the master plan. meet the strong demand for the lower priced Model 3, Tesla In Step 2, after selling some 2,500 Roadsters, Tesla hopes to increase its annual production to 1 million vehicles discontinued its production in 2012 to focus on its next by 2020. car: the Model S, a four-door family sedan, with an initial In the spring of 2019, Tesla launched the Model Y, a base price of $73,500. The line appeals to a somewhat compact SUV that is a smaller and much lower priced ver- larger market and thus allows for larger production runs to sion of the Model X. Elon Musk plans to start deliveries of drive down unit costs. The Model S received an outstand- the new Model Y between the fall of 2020 and spring 2021, ing market reception. It was awarded not only the 2013 with the entry version starting at $39,000 (and 230 miles Motor Trend Car of the Year, but also received the highest range) and the high-end performance version starting at score of any car ever tested by Consumer Reports $60,000 (and 280 miles range). (99/100). Tesla manufactures the Model S in the Fremont, Step 4 of Musk's master plan for Tesla aims to provide California, factory that it purchased from Toyota. By the zero-emission electric power generation options. To achieve