The Model S is posting as a luxury car with great performance that simply has the added benefit of being a fully electric vehicle without sacrificing style and performance. This high-end luxury car is not missing anything from a traditionally European luxury car and that’s how Tesla wants concept to be. They do not want to convey that it is primarily an electric car because at the moment, electric cars do not have a sexy or glamorous reputation because of the cars they call "hybrids" that have horrible performance and style.
Figure 4, Tesla Positioning in market as luxury car
A strong marketing strategy will ensure success, which is the fault of many startups tending to forget and focus on operational aspect of the organization. Tesla didn’t
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Model S have a modern look that its functionality, convenience and safety along with style and energy efficiency. Overall, Model S means you can get all the perks of normal cars but without the downside of polluting the environment.
Price
Tesla pricing strategy consists of several factors as follow:
No negotiation and no discount policy, the pricing policy is built on a fundamentally sound strategy of pursuing customer and market place integrity. Discounting new cars affect the resale value of cars and so devalue the installed base of cars already in the market. By protecting the new car price, Musk is also protecting the investments of early adopters who bought tesla cars
Price increase and decrease based on features, one type of model x comes with a smaller battery is sold 5000 $ cheaper than the normal model, thus the company adopt a strategy to adjust pricing when its portfolio changes, or as it adds features and options to its electric vehicles
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uses a premium pricing strategy. This strategy involves using high price points on the basis of uniqueness or high value attributed to the company’s products. For example, customers are willing to pay relatively high prices for Tesla automobiles, which are viewed in advanced in terms of technology and ecology. Thus, innovation and product design are significant factors in successfully using this pricing strategy. Premium pricing agrees with Tesla’s generic strategy of differentiation, which emphasizes uniqueness of products. Such strategy is with other factors led to 70-80% yearly growth in sales for the past 10