Taste recently announced its plans of producing an affordable Gene Ill vehicle that will become available in three years with a less expensive battery than the Model S but with the disadvantage of a shorter per-charge range (Albert). Taste currently positions itself in the automotive market as a luxury brand but it now has the opportunity to expand and reach a whole new market with its new Model 3.
The opportunity to successfully win over a new market of middle class buyers and disrupt the auto industry is possible for Taste but here are also many challenges that the company will endure in the process. Teasel’s future ambitions ultimately rest on its ability to manufacture a battery at a competitive price, which seems difficult in the current environment, where oil is plumbing record lows with each passing week (Oiling).
In order to analyze Teasel’s potential success of creating affordable mass market electric vehicles, it is beneficial to consider its competition and existing industry through a STOW analysis. Teasel’s key strength for the new Model 3 development is its outsourcing of secondary components that helps to keep low cost and focus primarily on genealogical advancement (Welch). In turn, this moves to a strong R department, creating high productivity battery systems and electric perpetration (Taste Motors, 2010) and overwhelming the competition in the market.
This is extremely important in the production process of the new Model 3 because the battery and the charger are the key components that need to see improvements to ultimately make the vehicle most cost effective. Taste has also acquired several investors from reputable companies such as Google, and built successful strategic partnerships with Daimler, Toyota Motors and Panasonic (Taste Motors, 2014) that brings mutual benefits to both parties, sharing their expertise in production processes and technologies.
These partnerships also provide the trust for Teasel’s potential customers, future investors, and may also boost the company’s limited brand recognition. Taste also has a competitive advantage over other competitors in the market as it has a comprehensive, proprietary technology with 40 patents awarded and over 200 patents pending (Taste Motors, 2014). Although Taste has all the technological expertise and distinguished tragic partnerships it needs to design a cost effective high performance vehicle, it also has its weaknesses.
With the price point being much lower than its higher level models such as the Model S, Teasel’s Model 3 will not have enough battery capacity to overcome the range limitations that OCCUr on many of its competitors electric cars. Even with a less expensive battery, the cost will be a shorter-per-charge range and will not differentiate itself much from the competition. In order for this vehicle to be efficient enough for the average person to buy, the battery must last longer, and the charge must append quickly so that it can compete with regular filling stations.
The time to recharge one of these vehicles is another weakness that Taste needs to improve upon. If they are trying to appeal to urban city dwellers, they need to reduce the charging time to the point that it will be a comparison to the non-electric models (Km). With the new Model 3 in development, Taste has many opportunities that can help move the company in the right direction for future endeavors, current ones such as the Model 3, and even improving existing ones. Taste is planning to build high powered charging stations across the country that will hare your car in 30 minutes (Km).
Taste can expand and build this “supercharger network’ in locations where urban city dwellers can easily access and quickly charge their vehicles. This expansion of charging stations into urban areas will appeal to a larger group of people outside of the typical “affluent suburbanite’s chaff (Albert). Taste can also find a way to use their battery technology in other areas such as storing power from solar panels. With the big issue being the battery cost for this new affordable car model, it is possible for Taste to reduce lithium-ion battery costs by using alternative sources of power storage.
Taste faces several threats upon entering the mass market with a new cost effective vehicle-?namely from its competitors. First, more and more auto manufacturers are releasing environmentally friendly cars. Chevy plans to release its “Bolt” around the same time as the Teasel’s Model 3. The timing is noteworthy, because the Bolts key features-?range, price tab giant in-dash touchstones-?are clearly intended as a response to Teasel’s Model 3 plans (Remorse). Since many of these companies are larger than Taste Motors, they may have more financial resources.
Thus, they can survive longer if the price of oil does not increase in the near future. Second, there is the threat of increasing internal combustion engine efficiencies. Although alternative-fuel options such as compressed natural gas, propane auto gas, and pure battery- electric are steadily making more and more headway into the vehicle market, most Moms continue to bank on the reliability and efficiencies that go along with the internal combustion engines’ 1 00-plus-year technology (Babcock).
In conclusion, despite the weaknesses and threats that Taste may encounter with this new low-cost vehicle model, Taste has a great chance of disrupting the auto industry-?for the better. Taste should have no problem reaching its tragic goal of bringing its electric vehicles into the mainstream and winning over buyers who would otherwise continue to drive gas-guzzlers. Over time, the network of charging stations and battery improvements have potential to be seen as a huge barrier preventing today’s automotive leaders from being competitive.