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The rapid growth of the electric vehicle market is due to various factors. Some of these include the new regulations that affect vehicle emissions and safety, as well as the increasing expectations of electric cars from customers. Tesla Motors’ unique business model is also partly responsible for the mainstream acceptance of electric cars.


Elon Musk founded Tesla with the goal of creating a mass-market electric vehicle that would be affordable and sustainable. Through this business model, he was able to achieve this goal.


Tesla’s First Product

Tesla’s unique approach to establishing itself in the market was also responsible for its success. Instead of mass-producing and selling a car that would be easily accessible, the company focused on creating a compelling vehicle that would attract more buyers.


In a post on the company’s website, Elon Musk stated that it would have been impossible for Tesla to mass-produce its first car. The company had only one technology and needed help to scale its operations. Instead, it focused on developing a sports car that would be more competitive with the gasoline alternatives.


The Next Stage

Tesla’s business model was reinforced after it delivered its first car to the market. It involves selling and servicing its electric vehicles and charging them.


Direct Sales

Unlike other car brands, Tesla does not have a franchise network. Instead, it has its own global network of showrooms and galleries. These are mostly located in urban areas.


Tesla believes that its sales channel can help speed up the development of its products. It also provides a better customer experience by allowing the company to interact directly with its potential customers. Unlike other car dealerships, Tesla’s galleries and stores do not have conflicts of interest.


Home Services

In certain areas, Tesla employs mobile service support, also known as Tesla Rangers. These individuals can be located remotely and provide service on a case-by-case basis. Through the Model S, which can wirelessly upload data, the company’s technicians can fix various issues without actually touching the car.


The Supercharger Network

In order to speed up the adoption of electric cars, Tesla has built its own network of 30,000+ superchargers. These facilities are designed to provide drivers with a convenient and cheaper way to recharge their cars.


Although Tesla did not create the electric car, it has a successful business model that it uses to bring the vehicles to the market. One of the company’s main strategies was to build a network of charging facilities. This strategy was designed to help solve one of the biggest obstacles to the adoption of electric automobiles: the lack of availability of fuel.