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Tesla's Optimal Positioning

Personally I am a fan of how Tesla had positioned itself while it entered a Prius dominated EV market. Instead of going head-on with the competitors, they positioned themselves specifically to the high end market, catering to a luxury seeking target segment.

Tesla’s release has been a hit with not only car buyers, but also catapulted the company into the spotlight as one of the few successful independent automakers along with being a pioneer when it comes to the electric car market.

In order to stay competitive in the niche market, Tesla Motors has expanded its manufacturing footprint in The Netherlands and Lathrop, California. To keep costs down on lithium ion battery packs, Tesla and key strategic partners including Panasonic started building a gigafactory in Nevada that will facilitate the production of a mass-market affordable vehicle, Model 3.

They leveraged economies of scale on their high end products and brought in a market capitalization of around ~$93 Billion.

The key of positioning is to be unique and meticulously stick to the positioning strategy consistently


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