The biggest threat of substitute to a green vehicle is the currently largely used gas vehicles. This substitute arises because the cost of producing a green, let alone electric car is quite expensive so, in order to create profit for the company, they must obviously charge a higher price. For a while, the idea of an affordable hybrid car was out of the question. But technological advances and breakthroughs have allowed for cheaper methods of production which translate into cheaper vehicles for the consumer. Other substitutes include different modes of transportation. Riding a bicycle, taking the bus, walking, are all substitutes to some extent. However, these do not fully recognize the possible needs of the consumer so the threat of these …show more content…
The enticing provision for a high-quality electric vehicle from a company that is outside of the automotive mainstream can be seen as a looming and very possible threat. The appeal is Tesla’s product offering, that speaks to the demand that the public has for a car that not only does not use gas but also is completely electric. The price positioning for Tesla vehicles is a little on the high side compared to the gas powered cars, but is competitive against cars like the Chevy Volt and the Nissan Leaf. Tesla’s mission since the beginning has been to create a fully electric vehicle that is affordable to the average consumer. If the average consumer can afford a fully electric car in ‘X’ amount of years, then the gas powered and possibly hybrid car producers (though the price of Tesla’s vehicles would have to shrink significantly to push out hybrid and other very green vehicles) would be substituted with this new wave of fully electric vehicles which can cost the customer close to nothing in charging/filling their vehicle since Tesla’s charging stations are free due to the fact that they are powered by solar energy. The most challenging part for electric cars’ producers is to improve the distance that the car can travel without