Tesla is a disruptive tech company with a clearcut 360-degree strategy to employ global clean energy solutions.
Many Wall Street investors have trouble understanding why Tesla‘s market value continues to rise above the stalwarts of Big Auto. Isn’t Elon Musk‘s automaker just another car company that happens to make electric cars? Well, no. There’s a lot more to it. Kristina Zucchi at Investopedia reveals some of the “secret sauce” that makes the Silicon Valley automaker so unique.
With its ongoing software updates and ever-evolving autonomous driving features, Tesla is often viewed as a tech company. Zucchi notes, “Much like other tech companies, Tesla is intent on changing existing business models within the stodgy automotive industry… Its product pipeline and founder evoke a loyal following similar to those for iconic tech companies such as Apple.”
It all starts with a different sales model. Zucchi explains, “Unlike other car manufacturers who sell through franchised dealerships, Tesla sells directly to consumers. It has created an international network of company-owned showrooms and galleries.”
And by selling direct, Tesla “creates a better customer buying experience. Unlike car dealerships, Tesla showrooms have no potential conflicts of interest. Customers deal only with Tesla-employed sales and service staff.” In addition, Tesla’s been a pioneer in online auto sales too.