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Tesla EV chargers open to non-Tesla Cars

Analysis By- Nitish Jain

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TABLE OF CONTENTS

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Executive Summary

Case Overview
Background

3. Case Themes

Theme 1: Customer Value Proposition

What is the value proposition that this move brings to CONSUMERS?

Theme 2: Competitive strategy?

Competitive Strategy- How will this move affect Tesla’s competitive advantage?

Theme 3: Who is tesla targeting ?

What’s its segmentation ? and how does it plan to position itself in the market?
How is Tesla segmenting the EV market by opening up its supercharger network to non-Tesla EV owners?
Who is Tesla targeting with the expansion of its supercharger network to non-Tesla EV owners?
How does Tesla's expansion of its supercharger network to non-Tesla EV owners affect its positioning in the EV market?

4. Key Takeaways

5. References

6. Appendices

Appendix 1: Perceived Value and Evaluated Price
Appendix 5: Porter’s Generic Strategies
Appendix 8: STP Marketing Model
Appendix 9: Market Segmentation - Requirements for Effective Segmentation
Appendix 10: Market Share: Share of Mind and Share of Heart

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Executive Summary

Case Overview:

This case study explores Tesla's recent move to allow other electric vehicles access to its Supercharger network (EVs). Tesla agrees to open chargers to public amid White House electric vehicle push by the Biden Government.

The influence of this choice on Tesla's brand positioning, competitive advantage, and customer experience with its value proposition are the main marketing topic being explored.

Introduction and Background on the Topic :

Tesla's Supercharger network, which provides quick and practical charging for Tesla owners, is a crucial difference for the company's electric automobiles. Tesla stated in February 2023 that it would allow other EVs access to 10% of its Supercharger network in the United States, with future expansion into other countries. This action was viewed as a significant departure for Tesla, which had previously concentrated on building an environment that was vertically integrated for its automobiles.

Topic Questions:

What is the value proposition that this move brings to CONSUMERS? - Accessibility, reliability, flexibility, convenience.

How will this move affect Tesla’s competitive advantage? – Brand positioning, Revenue, expansion of customer base and competitive advantage

How is Tesla segmenting the EV market by opening up its supercharger network to non-Tesla EV owners?

Who is Tesla targeting with the expansion of its supercharger network to non-Tesla EV owners?

How does Tesla's expansion of its supercharger network to non-Tesla EV owners affect its positioning in the EV market?

Key Takeaways:

Tesla's decision to open up its Supercharger network to other EVs is a product development decision.

Tesla's decision to retrofit Superchargers with Magic Docks to allow other EVs to charge is a market segmentation decision

Tesla's move to open up its Supercharger network to other EVs is related to the Biden-Harris administration’s EV push.

Tesla's confirmation that non-Tesla EV owners can use Superchargers and pay for them with a credit card or through the Tesla app is related to payment and pricing decisions.

Positioning can provide both positive and negative impacts on the market

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Discussion Question

What have you recently purchased that cost over $100? Write down all the reasons you purchased this particular item.

Because students are all consumers—it is interesting to start the class with a discussion of products they have recently purchased. When you ask them why they purchased a particular item or product, you can bring them through many topics in this chapter including the characteristics that affect consumer behavior (cultural, social, personal, and psychological). You can also try to determine the process they went through including how and where they searched for information and how they evaluated their alternatives. Finally, ask them how they feel about their purchase (postpurchase behavior). This discussion will lead nicely to the next slide about the model of buyer behavior.

Consumers make many buying decisions every day, and the buying decision is the focal point of the marketer’s effort. Most large companies research consumer buying decisions in great detail to answer questions about what consumers buy, where they buy, how and how much they buy, when they buy, and why they buy. Marketers can study actual consumer purchases to find out what they buy, where, and how much. But learning about the whys of consumer buying behavior is not so easy—the answers are often locked deep within the consumer’s mind. Often, consumers themselves don’t know exactly what influences their purchases.

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1. CASE OVERVIEW: � TESLA SUPER CHARGERS OPENS TO NON-TESLA CARS

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Overview

Tesla agrees to open chargers to public amid White House electric vehicle push

MKTG5200 (MKTG5200 Marketing Strategy)

Marketing Strategy

Dr. Robert Helal

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Overview

Overview: Tesla's decision to open up its Supercharger network to other electric vehicle (EV) brands is a significant move for the company, with potentially far-reaching implications. The primary marketing topics being examined are:

Competitive strategy: Tesla's positioning in the EV market and how this move will affect its competitive advantage
Customer value proposition: How this move will impact perceived value and brand positioning
Revenue stream: The potential for new revenue streams and business models arising from this move
Positioning: How does Tesla's expansion of its supercharger network to non-Tesla EV owners affect its positioning in the EV market?

Main lesson: Innovation and strategic partnerships with government can help companies gain a competitive edge in the market while also promoting sustainable practices.

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Marketing Strategy

Dr. Robert Helal

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2. BACKGROUND

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BACKGROUND: �UNDERSTANDING THE CHARGING NETWORK TODAY

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Tesla

https://electrek.co/2023/01/09/heres-how-many-ev-chargers-the-us-has-and-how-many-it-needs/#:~:text=S%26P%20Global%20Mobility%20estimates%20that,20%2C431%20Level%203%20charging%20ports.

https://www.whitehouse.gov/briefing-room/statements-releases/2023/02/15/fact-sheet-biden-harris-administration-announces-new-standards-and-major-progress-for-a-made-in-america-national-network-of-electric-vehicle-chargers/

Understanding the Charger Network– What we have?

Total Industry

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https://electrek.co/2023/01/09/heres-how-many-ev-chargers-the-us-has-and-how-many-it-needs/#:~:text=S%26P%20Global%20Mobility%20estimates%20that,20%2C431%20Level%203%20charging%20ports.

Understanding the Charger Network – How many we need?

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Marketing Strategy

Dr. Robert Helal

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https://www.forbes.com/sites/bradtempleton/2023/02/21/tesla-to-open-up-10-of-superchargers-to-other-cars-but-its-more-complex-and-the-plans-misguided/?sh=52a5782e3b7c

Understanding the Charger Network – How we plan on achieving what we need?

Some stations are now equipped with the integrated CCS adapter (Magic dock) to work with non-Tesla EVs

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Marketing Strategy

Dr. Robert Helal

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https://evadoption.com/ev-charging-stations-statistics/us-charging-network-rankings/

Competition Analysis

Tesla leads the competition and with this step will continue to do so.
The move was praised by industry experts and the White House as a way to promote EV adoption and reduce carbon emissions.

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Marketing Strategy

Dr. Robert Helal

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https://www.forbes.com/sites/bradtempleton/2023/02/21/tesla-to-open-up-10-of-superchargers-to-other-cars-but-its-more-complex-and-the-plans-misguided/?sh=52a5782e3b7c

Why is it best for the Consumers that tesla is doing this?

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Marketing Strategy

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3. CASE THEMES

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THEME 1: �CUSTOMER VALUE PROPOSITION

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What is the value proposition that this move brings to CONSUMERS?

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Accessibility &

Flexibility

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Marketing Strategy

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What is the value proposition that this move brings to CONSUMERS?

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Reliability

&

Convenience

https://www.caranddriver.com/news/a35044132/plug-and-charge-ev-charging-mustang-mach-e/

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Marketing Strategy

Dr. Robert Helal

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THEME 2: �COMPETITIVE STRATEGY?

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Competitive Strategy- How will this move affect Tesla’s competitive advantage?

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https://www.strategy-business.com/article/The-rise-of-the-eco-friendly-consumer

Brand Positioning

By allowing other brands to use its Supercharger network, Tesla could dilute its brand image and make it seem less exclusive.

Revenue

By allowing other brands to use the network at a premium price, Tesla could see an increase in revenue.

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Competitive Strategy- How will this move affect Tesla’s competitive advantage?

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https://www.strategy-business.com/article/The-rise-of-the-eco-friendly-consumer

Expand the customer base

Tesla may be able to draw in new consumers by making its charging network available to EVs manufactured by companies other than Tesla. If these customers have had a favorable experience utilizing the company's charging network, they might be more inclined to think about Tesla for their subsequent EV purchase.

Competitive advantage

Tesla's Supercharger network has given the company a major competitive edge by enabling Tesla owners to drive great distances without having to worry about running out of energy. If Tesla allows other brands to use the network, it could lose this competitive edge because they could provide their own charging networks that are just as quick and easy.

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THEME 3: �WHO IS TESLA TARGETING ?, WHAT’S ITS SEGMENTATION ? AND HOW DOES IT PLAN TO POSITION ITSELF IN THE MARKET?

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How is Tesla segmenting the EV market by opening up its supercharger network to non-Tesla EV owners?

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Potential Segments:

Existing Tesla Owners
Non-Tesla EV owners
Gas car owners
Potential, on the verge of transforming into EV car owners
Millennials and Genz with no cars.

https://www.theverge.com/2023/2/15/23600859/tesla-supercharger-non-tesla-ev-number-biden

Tesla is able to boost accessibility and convenience of charging for EV users, regardless of the brand of their vehicle, by segmenting the market in this way.

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Who is Tesla targeting with the expansion of its supercharger network to non-Tesla EV owners?

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Tesla is targeting :

Non-Tesla EV owners
Potential EV buyers

https://www.theverge.com/2023/2/15/23600859/tesla-supercharger-non-tesla-ev-number-biden

By opening up its supercharger network, Tesla aims to increase the adoption of EVs and help accelerate the transition to sustainable transportation.

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Dr. Robert Helal

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How does Tesla's expansion of its supercharger network to non-Tesla EV owners affect its positioning in the EV market?

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https://www.theverge.com/2023/2/15/23600859/tesla-supercharger-non-tesla-ev-number-biden

Tesla's decision to make its supercharger network available to EV owners improves its position as the market leader in EVs. This action illustrates Tesla's dedication to sustainability and desire to work with other industry participants to hasten the transition to environmentally friendly transportation.

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Dr. Robert Helal

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To Non-Tesla EV owners looking for convenient and fast charging solutions, Tesla is opening up 10% of its Supercharger network to non-Tesla EV owners. Our ambition to disrupt the EV business by democratising EV ownership is driven by our dedication to sustainability and accessibility. We distinguish ourselves from other charging networks with the quickest charging speeds, cutting-edge technology, and a seamless user experience. We give non-Tesla EV owners the ability to use our network easily by equipping our Superchargers with Magic Dock, guaranteeing that they have access to dependable and effective charging infrastructure.

Potential Positing Statement from Tesla could be:

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4. KEY TAKEAWAYS

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Key Takeaways

The choice by Tesla to allow other EVs to use its Supercharger network was made in the interest of product development. By this step, Tesla hopes to increase customer traffic to its charging stations and encourage the use of electric automobiles.

The choice by Tesla to add Magic Docks to Superchargers so that other EVs can charge is a market segmentation choice. By serving a wider variety of EVs, Tesla is reaching a wider audience and gaining more customers.

The decision by Tesla to permit non-Tesla EV owners to utilize Superchargers is motivated by promotion. In order to attract EV owners of various brands, Tesla is presenting its charging network as an open and accessible platform.

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Marketing Strategy

Dr. Robert Helal

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Key Takeaways

The Biden-Harris administration's drive for a Made in America nationwide network of electric vehicle chargers is tied to Tesla's decision to allow other EVs access to its Supercharger network. This emphasises how crucial government relations are in influencing business decisions and strategy.

Regarding payment and pricing options, Tesla has confirmed that non-Tesla EV owners can use Superchargers and pay for them with a credit card or using the Tesla app. This enables Tesla to make more money by charging non-Tesla EV owners to use its charging infrastructure.

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Dr. Robert Helal

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Key Takeaways –

Possible Alternatives to Issues

1) Expand the Supercharger Network

2) Implement a reservation system

3) Dynamic Pricing System for

Non tesla’s

4) Develop new technology

MKTG5200 (MKTG5200 Marketing Strategy)

Marketing Strategy

Dr. Robert Helal

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Increase the Supercharger Network: To meet the rising number of EVs, both Tesla and non-Tesla, one answer is to expand the Supercharger network. By the end of 2023, Tesla has already made plans to deploy more than 10,000 Superchargers worldwide.
Introduce a reservation system: Tesla may introduce a system that enables customers to book a spot in advance in order to prevent crowding at Superchargers. By doing this, you might be able to shorten lines and guarantee Tesla owners have access to the charging stations when they require them.
Introduce a dynamic pricing system: Tesla might introduce a dynamic pricing system that levies a greater tax on non-Tesla EV owners who use Superchargers during rush hours. This may help deter non-Tesla EV owners from utilising Superchargers when Tesla owners are most in need of them.
Create new technology: Tesla has begun retrofitting Superchargers with a new "magic dock" that enables EVs other than Tesla to charge. The business may keep creating new technologies that makes it simpler for Tesla and non-Tesla EVs to use the same charging infrastructure without posing a problem for current Tesla owners.Ultimately, Tesla's main challenge will be to make sure that the Supercharger network continues to offer dependable and practical charging choices for current Tesla customers while also accommodating the increasing number of EVs on the road.

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5. REFERENCES

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REFERENCES

Reference
Reference
Templeton, B. (2023, February 21). Tesla to Open Up 10% Of Superchargers to Other Cars, But It's More Complex and the Plan's Misguided. Forbes. https://www.forbes.com/sites/bradtempleton/2023/02/21/tesla-to-open-up-10-of-superchargers-to-other-cars-but-its-more-complex-and-the-plans-misguided/?sh=52a5782e3b7c
Lambert, F. (2023, February 28). Tesla Officially Opens Superchargers to Non-Tesla EV Owners in US, How It Works. Electrek. https://electrek.co/2023/02/28/tesla-officially-opens-superchargers-non-tesla-ev-owners-us-how-it-works/
Notateslaapp. (2023, February 24). Tesla starts retrofitting superchargers with "magic dock" to allow other EVs to charge. Notateslaapp. https://www.notateslaapp.com/news/1223/tesla-starts-retrofitting-superchargers-with-magic-dock-to-allow-other-evs-to-charge
Higgins, T. (2023, March 2). How Tesla Opening Its Superchargers Alters the EV Charging Map. The Wall Street Journal. https://www.wsj.com/articles/how-tesla-opening-its-superchargers-alters-the-ev-charging-map-c9398c90
Parti, T. (2023, February 15). Tesla's chargers could soon be open to the public. Politico. https://www.politico.com/news/2023/02/15/tesla-chargers-public-electric-vehicles-00082875
Tesla. (n.d.). Non-Tesla Supercharging. Tesla. https://www.tesla.com/support/non-tesla-supercharging#:~:text=from%20one%20account%3F-,Yes.,to%20charge%20non%2DTesla%20vehicles.
Hawkins, A. J. (2022, July 7). Tesla says its Supercharger network is now open to other EVs in the US. The Verge. https://www.theverge.com/2022/7/7/23198696/tesla-supercharger-non-tesla-ev-us-white-house

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Discussion Question

What have you recently purchased that cost over $100? Write down all the reasons you purchased this particular item.

Because students are all consumers—it is interesting to start the class with a discussion of products they have recently purchased. When you ask them why they purchased a particular item or product, you can bring them through many topics in this chapter including the characteristics that affect consumer behavior (cultural, social, personal, and psychological). You can also try to determine the process they went through including how and where they searched for information and how they evaluated their alternatives. Finally, ask them how they feel about their purchase (postpurchase behavior). This discussion will lead nicely to the next slide about the model of buyer behavior.

Consumers make many buying decisions every day, and the buying decision is the focal point of the marketer’s effort. Most large companies research consumer buying decisions in great detail to answer questions about what consumers buy, where they buy, how and how much they buy, when they buy, and why they buy. Marketers can study actual consumer purchases to find out what they buy, where, and how much. But learning about the whys of consumer buying behavior is not so easy—the answers are often locked deep within the consumer’s mind. Often, consumers themselves don’t know exactly what influences their purchases.

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6. APPENDICES

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Appendix 1: Perceived Value and Evaluated Price

Pricing and quality have implications on …

Revenue

Margins and Profitability

Image and Positioning

Competitive Strength

Perceived Value

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Revenue

Benefit

Cost

Price

Customer

Producer

Offering

OPTIONS

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Appendix 5: Porter’s Generic Strategies

COST LEADERSHIP	DIFFERENTIATION
F O C U S

Low cost

Differentiation

Industry-wide

Single segment

SOURCE OF COMPETITIVE ADVANTAGE

COMPETITIVE

SCOPE

Toolkit

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Appendix 8: STP Marketing Model

Toolkit

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Appendix 9: Market Segmentation - Requirements for Effective Segmentation

Measurable

Accessible

Substantial

Differentiable

Actionable

Key message: understand and focus your target segments�e.g. Analytic Applications – Scale: horizontal vs. industry content

Toolkit

e.g. HR Analytics

e.g. Localization

e.g. SaaS local servers

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Appendix 10: Market Share: Share of Mind and Share of Heart

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http://www.marketsharecalculations.com/wp-content/uploads/2016/02/share-of-minds-and-hearts.png

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