Read Chapter 11, view the PPT slides, read the articles below and discuss: http:
ID: 445178 • Letter: R
Question
Read Chapter 11, view the PPT slides, read the articles below and discuss: http://fortune.com/2015/07/22/teslas-cheaper-car/ http://www.huffingtonpost.com/2014/07/16/tesla-model-3_n_5591671.html (Links to an external site.) http://www.autotrader.com/car-news/cheaper-tesla-model-e-expected-to-debut-at-2015-detroit-show-218158
Is this pricing plan going to work for Tesla? Will Tesla sell more cars with this less expensive model? Tesla is a luxury car. Will this ruin the brand's image? Would you buy a cheaper Tesla?
Explanation / Answer
Yes I believe the pricing plan is going to work for Tesla. Because an affordable car from a brand like Tesla will just increase the market share and will attract more customers from differrent brands and different categories to Tesla showrooms. This will also encourage cross shopping within Tesla models.
Obviously Tesla will sell more cars with this less expensive model. Cosidering the example of Audo and BMW to bring and sell less expensive models in India worked for them as the brand in itself is enough to sell these luxury cars.
No it will not ruin the brand's image, as there will a ddifferent categories of segments that Tesla have to offer.
Sure I will buy if I can get Telsa brand at a cheaper price.
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