What makes Tesla’s Business Model Different?

 Tesla car

A Tesla can be described as an electric vehicle. Everyone knows this. It’s less aware that the car’s name was inspired by Nikola Tesla, an electrical engineer who was once known as the model of a brilliant inventor. What makes Tesla’s Business Model Different?

What is Tesla’s primary goal?

We’re creating a world with solar power, powered by batteries, and being transported via electronic vehicles. Find out the latest impact from our technology, employees and supply chain. We develop sustainable systems that are incredibly expandable and can provide the most environmental impact that is achievable. What makes Tesla’s Business Model Different? 


Why tesla is necessary?

Electrical vehicles are the need of the day. The reasons are numerous and include the introduction of new regulations for emission standards and safety technology advancements, as well as changing customer expectations.

Tesla CEO and co-founder Elon Musk founded Tesla with the intention “to speed up the development of sustainable transportation through creating electric cars that can compete with mass-market vehicles on the market as quickly as possible.  1 This is the foundation of Tesla’s thriving business model.


  • Tesla’s business model is built in direct sales, and support and not franchised dealerships.
  • Tesla’s business model focuses its attention on the rollout of charging stations. This is perhaps the biggest hurdle to the mass adoption of electric cars.
  • Tesla has extended its business model to include storage for energy in both businesses and homes.

Tesla’s First Product

Tesla had a unique strategy to make its mark on the market. Instead of building an affordable vehicle that could produce in mass quantities and sell rather than take the opposite route by focusing on the creation of an attractive car that could generate demand for electric automobiles.

Our first product was likely to cost a lot no matter how it was designed and so we chose to design the sports car as it appeared to have the greatest chances of competing against the gasoline-powered alternatives.” 1

That’s right, Tesla delivered to the market its first electric high-performance premium sports vehicle, called the Tesla Roadster. Tesla sold 2500 Roadsters prior to the end of production in Jan. 2012. 2 Not an amount that could sever the nerves of General Motors.

The Next Stage

The year was when Tesla created its brand name and logo, and then unveiled its first Concept car on the market, and reiterated the business plan that it had developed. Tesla’s business model rests on a tri-pronged strategy of selling maintaining, charging, and maintaining electric vehicles. Direct Sales In contrast to other car manufacturers that sell their products via franchised dealers Tesla gives direct sales to its customers.


Tesla has created an entire network within the world market of showrooms operated by the company, as well as galleries, which are primarily located in urban areas. When it comes to establishing an online sales platform, Tesla believes it can benefit from the rapid pace of advancement. Furthermore, it will provide customers with a better experience. As opposed to automobile dealers, Tesla showrooms don’t contain conflicts. Customers deal only with Tesla’s service and sales employees. which includes showrooms as well in Service Plus centres (a combination of a retail store and service centre) and establishments that provide services. Tesla operates 823 stores across the globe in May 2022.. 3. Tesla has also used Internet sales which allows customers to personalize and purchase the Tesla online.  In some cases, the services are offered remote. 4. The Model S can wirelessly upload data to technicians, which allows them to inspect and solve problems without physically touching the vehicle. 5

The Supercharger Network

Tesla has developed the world’s first network of more than 30,000 Global Superchargers that allow drivers to recharge their Tesla cars in just 15 minutes at just a quarter of what it costs gasoline. The aim obviously is to accelerate your rate of acceptance of electric vehicles by making it more affordable and more convenient to maintain them. 6

Tesla’s Models

Tesla was first introduced to the market with its attractive Roadster. The company launched the Model S sedan in June 2012, it ceased production of it. It was replaced by the Roadster. 7

Tesla launched its first SUV Model X, also known as Model X, in September 2015. Model X, in September 2015. 8

First Model 3 deliveries kicked off in July 2017 to mark Tesla’s entry into the market of low-cost cars. 9 In 2022, the Model 3’s base price begins at $48,490. 10


The starting price for the supercharged 2023 Tesla Roadster, touted as “the fastest car on the planet. “1112

Tesla has merged several of its sales centres along with service centres, such as charging stations. They believe that the opening of a service centre in a new location will result in increased demand for customers. Customers are able to charge or service their cars at the service centres as well as the Service Plus locations. 3

Tesla also makes a completely electrical Semi Truck. It boasts an energy consumption of just 2 kWh per mile. The company claims that it can run 400 miles with a 30-minute charge right now, and is planning to extend the range to over 600 miles later in the coming years. 

Tesla’s latest car is a supercharged version of the Roadster. The original Roadster the company says is its “quickest automobile in the world,” capable of going from 0-60 in 1.9 minutes. 12 Deliveries of the brand new Roadster are scheduled to begin in 2023, and the starting cost of $250,000. 11 Interested customers can reserve a brand-new Roadster with a $5,000 initial payment on a credit card and a wire transfer of $45,000 to be paid within 10 days following the date of an initial transaction. 14

Other Tesla Products

If you’re not aware, one of the pillars of Tesla’s purpose is “to speed up the development of sustainable transportation.” 1 In order to achieve this, Tesla sells powertrain components and systems to other automakers.

In April 2015, the company launched a range of batteries for homes, dubbed the Powerwall which serves as energy storage systems for homes and businesses. 

Similar to its competitors, Tesla offers financial services like auto credit as well as leasing. In some loan programs, it is utilized to provide a resale value guarantee. This was risk-free security on the value of a car should the purchaser decide to sell the vehicle. 18

Is Tesla a Tech Company?

Many analysts and investors view Tesla as a tech company, not an automobile company. This is how they justified the increase in the company’s stock price beginning at the end of 2013, which went up nearly 300% in one year.

The media scrambled to discover similarities between Tesla and companies in the technology industry and had comparable growth rates. The online publication Slate even published a story which was a comparison of Tesla with Apple Inc. (AAPL) and Alphabet Inc. (GOOGL).

At the time, Morgan Stanley analyst Adam Jonas who has been an avid Tesla fan since the beginning of the company’s existence set the price target of $103 “at full maturity. ” 19 By May 25, 2022, TSLA traded at $661.58. 20

There are a number of similarities between Tesla as well as the technology industry. Tesla has adopted the disruptive concept of the tech industry. Similar to other tech firms, Tesla is intent on altering the current ways of doing business in the outdated automobile industry through direct sales to customers. The company’s founder and product pipeline attract a loyal customer base like those of iconic tech companies like Apple.

Investors in Tesla-like those in other tech companies persevered through a long stretch that saw quarterly losses. They finally saw their reward: Tesla recorded its first annual profit in the fiscal year 2021. 21

The Bottom Line

This is the main obstacle in the widespread use of electric automobiles: It won’t be achieved without the infrastructure needed for charging on the go. Tesla plans to add to its Supercharger network stations across Europe, the U.S., Europe, and Asia.

Tesla was not the first to develop the electric car, nor even the luxury electric car. However, Tesla was able to create an efficient business model to bring compelling electric vehicles to market. One of the strategies was creating charging stations in order to overcome one of the biggest hurdles faced by electric vehicles: fueling up during long journeys. The unique model of business that Tesla has that includes ensuring control over the sales and services is one of the reasons its shares have soared from its first public offer. A Digital Wallet to Meet All Your Web3 Needs

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