Tesla’s International Deals
Tesla Model S is one of the unique products of the electric car manufacturer, Tesla Motors. In fact, it is the only luxury electric car with a rather significant range and advanced technical characteristics. Tesla is the top manufacturer of such products. Model S is sold very well in the USA because of the ecological footprint, style, and the set of options Tesla provides to its customers. European sales are not that good because the customers in Europe are more sophisticated and spoiled by the variety of luxury brands with low carbon emissions, yet not fully electric (Rosemain 2015).
Therefore, the European countries and their neighbors implement various programs to encourage the local population to purchase electric cars. Thus, in Norway, for example, there is a loyalty program initiated by the government that provides Tesla with a substantial competitive advantage (Doyle and Adomaitis 2013). The customers of Tesla receive state subsidies about $11,000 per such car to promote the use of Tesla production along with other electric car manufacturers such as Nissan, Peugeot, and Mitsubishi. There are other benefits as well: “The benefits are… too good. You can take bus lanes, get free parking, and it costs very little to refuel” (Doyle and Adomaitis 2013). Such an approach makes Tesla sales grow in this international market.
The company is the pioneer in the area of producing and selling luxury electric cars on the international market. Therefore, Tesla Motors has numerous patents that allow the company to keep its monopolized position of the most valuable and significant seller of the cars in this segment. However, according to Elon Musk, the market for such cars is huge today, and any company powerful enough to produce similar cars should have access to the technologies to promote the reduction of carbon emissions to the atmosphere.
He declared that the company would not be against the use of the patents for a good cause: “Tesla will not initiate patent lawsuits against anyone who, in good faith, wants to use our technology” (Rimmer 2015). Such harmonization of the international market should bring a variety of benefits to the manufacturers of the electric cars from the increased demand to the additional subsidies from the countries, promoting the electric car usage, to the increase of the environmental protection efforts.
Tesla’s efforts to sell its products to the customers directly are nearly useless in the USA. The domestic market has strict regulations aimed at banning the monopolization efforts of any car manufacturer. These regulations originate at the dawn of the automobile industry development in the 20th century when car manufacturers needed to sell and repair cars through the franchises. It was called “dealer franchise law” and such laws work in the majority of the US states (Crane 2014).
Considering the situation, Tesla’s lobbying activities are mostly aimed at abandoning such outdated laws that would allow the company to sell and support its products directly. Modern car manufacturers are capable of providing customers with a full range of services from the showrooms with new cars to branded dealerships. In the case of Tesla, it would require additional supercharging stations, swap batteries stations, and the infrastructure of such kind, but it should be noted that such efforts are worth the potential outcomes for both Tesla and its customers.
Crane, Dan. 2013. “Tesla and the Auto Dealers Lobby.” Truth on the Market. Web.
Doyle, Alister, and Nerijus Adomaitis. 2013. “Norway Shows the Way with Electric cars, But at What Cost?” Reuters. Web.
Rimmer, Matthew. 2015. “Toyota v Tesla: Eliminating Patent Trolls to Save the Hydrogen Car.” Australian National University. Web.
Rosemain, Mathieu. 2015. “Tesla Struggles in Germany with Model S Buyers.” The Detroit News. Web.