There is a great buzz in the market regarding the shift to e-mobility. Though the question is not about “Why,” it is about “How,” i.e., how can we have a smooth transition to all-electric mobility? Well, the straightforward answer to this question is – No, we can’t. The path to an all-electric fleet is not a straight one.
Tesla Inc. is one of the few companies striving hard to transform the mobility sector. It is American clean energy and electric vehicle company. It designs and manufactures electric cars, energy storage batteries, solar panels, solar roofs, and related products.
The transition to an electric fleet was inconceivable a few years back. But the way, Tesla is strategizing its efforts is commendable. It has adhered to some tactics which keep it stand apart from the rest of the players. First, it has built an image of a company that cares for the environment and thus appeals to people to use eco-friendly products. For example- Tesla could have quickly patented their technology and would have made a lot of money. But it allowed its competitors to use its technology, citing that it wants to expand sustainable technology. Second, they took a quite unique or strange approach to get themselves rooted in the market. Instead of making low-cost cars for mass production, they have focused on a high-end luxury sports car that would spur the demand for Electric vehicles. Third is, they adhere to the principle of direct selling, which means they don’t sell through the franchised dealership; they have their outlets and staff. This tactic of direct selling gives them an edge when it comes to the customer buying experience and product development. Also, they provided the use of internet sales-where you can purchase your vehicle online.
Vertical Integration: Tesla Inc. has a very high degree of vertical integration (around 80%), which is very rare to find in an automobile company. This allows it to have stringent control over the entire supply chain, from procuring materials to delivering the vehicles. It produces its vehicle components and sets up its charging stations where people can charge their vehicles.
Ramping up the charging infrastructure: Tesla Inc estimated in the beginning only that charging infrastructure would be a critical factor. So, they have ramped up the installation of charging stations in major countries across the globe. They have set up DC Superfast charging stations, where drivers can get their vehicles fully charged in just 30 mins. Also, they have set up “GIGAFACTORY” in China, the US, Germany, and the UK to achieve the economies of scale for the production of Li-Ion Battery, a crucial component of EV.
Though, these measures are reasonable in the long run. But still, we are far away from the finish line. There are a lot of challenges we are facing right now, like Range Anxiety, Charge Anxiety, the Inadequate number of charging stations, lack of Servicing options, and insufficient power generation capacity to accommodate those vehicles. So, the road ahead is not so smooth for Tesla, it have to work on the challenges currently facing the EV sector.
About the writer
Praveen Kumar
Pursuing PGDM (Finance) at IMT Hyderabad
Interests in Automobiles, Politics
No comments:
Post a Comment