A while back, after a rigorous study of Tesla’s brand strategy and then contrasting my ideas with those of leading executives from all over the world, I explained why I thought that most analysts, whether from the financial, automotive and energy industries, were wrong about the company. My central argument was that Tesla’s future lay not in its ability to produce motor vehicles, but batteries.
Since I wrote that article, a lot data has emerged to back that argument up: on the one hand, the brand has managed, thanks to its Model 3, to hugely increase output, making it not only the leader in the US luxury car market, but tripling its sales in Europe in a market that has shrunk by 8%, positioning itself as one of the best-selling vehicles in severalcountries. Although its strategy of closing its showrooms and moving all its sales to the internet was seen by many as risky, it has worked, giving it a highly successful 2018, while the signs are that 2019 will be even better.
Some of Tesla’s most extreme critics, including Bob Lutz, who predicted its impending bankruptcy, have already changed their minds, and now praise its vehicles’ characteristics and its attention to details. If you’re looking for evidence of the importance of batteries in the company’s strategy, you’ll find them from A to Z, from Australia to Zimbabwe. The company’s intense focus on batteries and the strong commitment to building its gigafactorieshas led it to make strategic acquisitions and to be able to attract and concentrate talent to become a research powerhouse in the field.
Full Story by Forbes.