This Paper is the Synopsis of the case study Tease Motor Inc. ‘ which gives a broad overview to the overall car business in the US followed by the examination of the Electric Vehicle and previous models like the Ionians Leaf. With those information presented bad backed up by statistics and other researched data, the author go into detail in describing the new successful business mode from tease.
With innovation and determination to build an Electric car tease was able to develop a whole new concept and product which was revolutionary to the car industry. Furthermore the Company went new ways in how they market and sold their products which was a new way to promote and successful sell their new Innovation. America has a big car market with 20% of the households owning three or more vehicles and In general the American spend about 15% of their disposable Income on cars. A once flourishing industry In the US It dropped significantly by 98% from 1969.
The designing of a car was a difficult undertaking as numerous factors had to be taken into account for example the Perpetration which consists of the engine, transmission and various other complementary parts that needed to be considered by designing a car. The chassis and body plays also a major role as those elements where all necessary to build a fully functional vehicle. Therefore developing a new car uses a high amount of resources which results in to high cost from $1 ban for a regular car and up to $ban for an international car concept.
And these cost doesn’t include the cost for the production plant where the manufacturer can assemble the product which mainly consisted of a Body shop, Paint Shop and an Assembly line. A production plant to accommodate all that plus an efficient production rate of 100. 000-200. 000 cars be priced between $1 ban and $ban. All this results In the fact that cars also very expensive to produce where their production cost makes up roughly 80% of the retail price. In the US Car manufactures are one of the strongest advertisers with an annual amount of $3. -$4. 2 billion dollars spend on advertising campaigns. Dealerships represent the retail level for cars which are in close relation to the manufactures. The dealers are exclusively Just selling products from one brand and receive in exchange and exclusive territory for one or more of the manufacturer’s products. Dealerships offered most of the time also servicing of the car and follow up reattempt of the car which helped them to create more business, as the ‘new car sales’ market had been decreasing.
At the end of the 19th century, cars equipped of exchangeable batteries were already available on the market, thanks to the Hartford Electric Light who made this service possible. While this Innovation had known a certain Interest and success, the mall Issue of the Eves was that engines with Internal Combustion remained still leaders. One hundred year later, when the technology in more interesting. The perpetration was the big difference: the electric motor of the Eves one doesn’t need transmission to function, is smaller than his competitor and can also work as a brake to generate electricity in order to charge the battery.
Although, as it doesn’t need either motor oil or to be cooled down unlike the ‘C, the lack of heat inside lead to certain issues. The other component, the battery pack, was the most expensive, heaviest and complicated part of an EVE. The vehicles started with varied battery technology before adopting the Lie-loon batteries since the ass’s for multiples reasons, including their high capacity per weight and their importance in the control of the efficiency and the safety of the engine.
In terms of design, some existing cars were converted to electric ones, like the Ford Focus Electric with the infrastructure of a conventional vehicle and the same place for the battery and motor of The others were designed from scratch as electric cars, like the Tease and the Ionians Leaf where the battery pack is part of the floor passenger cabin to make space for cargo storage and enhance the center of gravity.
Choosing an EVE helps improving the environment, which is why some states gave tax advantages when purchasing such car and encouraged the gesture by requiring he use of zero-emission vehicles (CAVE) and the launching of credits amongst the producers. The difficulty of being a new technology is still an issue concerning the longevity, the safety and the use of chargers. As they are not yet very spread and many, some companies offer services like free charging for their employees, thousands of public stations by the department of energy or free superchargers by Tease.
In 2010, Ionians invested in a new fully electric Lie-loon mid-sized sedan, the Ionians Leaf. Complaints led to meliorations of the technology used, and a warranty system. In 2012, the brand changed the heat of Eves unit because of a fail within the sales, the following year the prices lowered of 18% and the sales doubled, same situation with the competitors GM and their Hybrid car. The same year, the electric sports car producer Fiske designed its own car body with outsourcing everything, including the production of the perpetration, before stopping its production by mid 2013.
Can you imagine a businessman getting involved in a business only for his passion for science and no background in the considered industry? Yes, and that’s exactly what happened for Leon Musk when he founded Tease in 2003. However, what helped the company to build a team is the extended network of the CEO in the Silicon Valley. Hiring people with high skills in innovation and technology rather than building a team of regular mechanical engineers was a paying choice for Tease and that was actually what gave them this image of “Innovative car”.
This team worked together with the British expertise of Lotus to come up with the first-ever high-end production EVE, where the perpetration was conceived and made in California and the body and chassis was the fruit of a co-work between Lotus and Tease. All of this was assembled y Lotus in the I-J. First car, first success for Tease Roadster, the product received a brands such as Ferreira and Propose, as the speed performances reached their results but with the big advantage of avoiding the noise and the protection of the environment.
Meanwhile Tease worked with Lotus for the Roadster, the production of the perpetration changed from Thailand to the US to make the whole production process under the same roof. Several battery issues came up with the first Roadster and a partnership was signed between Panasonic and Tease to improve the quality and life of Teasel’s future models. With more than 2500 models built with the help of Lotus, Tease considered the contract to be done in the end of 2012 and started to focus on designing and creating the new models of the brand that are the Model S and Model X.
The Tease electric perpetration peak offers unique performance. Unlike the internal combustion engine, which comprises hundreds of moving parts, the Tease motor comprises only one piece: the rotor. The acceleration of the Model S is instant, silent and smooth. Which was 10% faster than any car in the same category. Tease designed the whole model completely in-house, the model S had a rear wheel drive, but unlike there models there is no extra cost for it.
For the battery Tease improved the battery they used in Roadster the new battery was estimated to have double the energy density which reduced the weight of the car and presumably also used less materials, the battery were assembled into a rigid flat pack that formed the bottom of the car, there are also a lot of unique design features, where the software could be totally updated through cellular connection, the car have a 17″ touchstone to replace all the manual controls, when it comes to manufacturing Tease bought much f its production equipment from struggling manufacturers, according to some estimates they spent less than $1 BAL it would normally cost, also they manufactured everything plastic in the house to make it extra specific which was unusual for a plant with low volume, and manufacturing its complete perpetration in-house, for the sales Tease took a new road by not dealing with a dealership instead they built a network of company owned stores with salespeople on salary rather than commissions, In marketing the Model S Tease stressed speed, comfort and handling, before talking owe emissions, and how much savings the customer will have, where their message was The total cost of owning model S seemed similar to the ones in the same category but its actually less in the long term, even maintenance wise, the perpetrations Tease made was so powerful and desirable by other companies where Tease sold and designed for other car manufactures. Tease had a great year of 2013 where they sold 10,500 model S cars and they are expanding to Europe, the model X is coming soon as well where they have so many great added features to the car and they already started taking reservation to it.