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EV Industry: Distribution Models
History of Electric Vehicles
Tesla existed before Musk
Founded in 2003 by 2 Engineers
Nikola Tesla
Gm inspiration
2008 Tesla Roadster was released
Elon musk takes over as CEO
Musk goes on to released in Model S, Model X and Model 3, Model Y, Tesla Semi
Musk invested $30 million in the company and was the chair of the board of directors
2 engineers Martin Eberhard and Marc Tarpenning
The 2 originally set out to prove that you didn’t have to compromise in order to drive an electric car and that they could be faster and fun to drive
Company was named after nikola tesla who invented an electric induction motor that’s runs on Alternating Current which is utilized in Tesla Vehicles
They were inspired by Gms EV experiment in the mid to late 90’s check out the Doc. Who killed the eclectic car.
Basically they bough the rights to the patents for the batteries used in these cars and destroyed them alone with crushing all the cars. For fear of competition.
Roadster specs 110K mad it a luxury super car 0-60 in 4 seconds comparable to its combustion engine counter parts
Both original founders leave the company and Musk takes over
Under Musk company is taken public and releases model S, X, 3,Y and Semi
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Tesla controls the entire process from manufacturing, buying and servicing
Distribution Model approach simplifies the buying process
Go online, pick a car, choose features, place a deposit and schedule a pickup/ delivery
Alternative is the Standard model dealership
Tesla model takes less time
No pressure to buy
Lower retail space and little to no inventory housed at locations
What was your last car buying experience like?
I doubt it went smoothly and with out hrs of your time spent
Dealing with the pushy sales guy that doesn’t know enough about the particular model and package your looking for.
My last experience I had do my research and knew what I wanted and what all the options offered.
I knew more about the car than the sales guy that got a nice commission check
Tesla model statically places galleries in foot traffic locations like malls and busy shopping centers
They have a more no pressure environment.
Product specialist not sales people at galleries
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Tesla brings service to you
Distribution Model approach simplifies the buying process
Go online, pick a car, choose features, place a deposit and schedule a pickup/ delivery
Alternative is the Standard model dealership
Tesla model takes less time
No pressure to buy
Lower retail space and little to no inventory housed at locations
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Background
Advancements in Technology
Warehousing – Distribution Model
Pros/Cons
Recommendations
Oem manufactures should adopt some of new techniques to selling cars to make the experience more enjoyable
Offer more online purchase options and applications made digital or app based
Hold franchise’s (dealers) to fix pricing so consumer's don’t get stuck with extra costs
Upgrades without having to buy a new car
Specialty vehicle recs
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Thank you for listening! Any Questions?