Tesla Vs The Legacy Car Companies

Tesla Vs The Legacy Car Companies

Strategy

:

Solve Unsolved Problems

🚀 Success:

Most valuable automotive brand (2022)

🌱 Metrics Improved:

Sign Ups, Purchases Per Customer, Viral Coefficient

Tesla is currently the most valuable car company in the world.

But they make less than 10% of the cars that Toyota produces.

What’s going on here?

It’s crazy hype. People love Tesla.

But you can’t have this much hype about a product without that product being any good.

The formula

When it works best

How it looks in the real-world

Solve Unsolved Problems

A 10X improvement to the user experience is the holy grail for a breakaway product.

It normally requires some kind of major scientific breakthrough. But it can also come about with lots of smaller breakthroughs and design improvements.

Yes, Tesla developed the technology for significantly better batteries, motors and charging infrastructure BUT they have also put a lot of thought into making a far better user experience than a conventional car.

When you get in a Tesla, it feels undeniably different.

These are some of the smaller things I noticed when I got in one recently:

1. Can take Zoom calls on the big screen while driving

2. Play Mario Cart while waiting around in the carpark

3. Automatically detects dodgy activity around the car and starts doing weird things to deter thieves

4. Saves dashcam footage when you honk the horn

5. If you have a garage charging is super easy and you pretty much never have to go to a fuel station again

6. Freeway driving is enjoyable with autopilot

7. Driving with just one pedal differentiates the Tesla experience with energy-wasting driving

These easter eggs and thoughtful solutions to common use cases make a huge difference to the overall experience.

It’s how Tesla has been able to take on and beat premium German auto-makers who, through years of market dominance, had comfortably lead the market with their reputation of quality.

How it works

A 10X improvement to the user experience is the holy grail for a breakaway product.

It normally requires some kind of major scientific breakthrough. But it can also come about with lots of smaller breakthroughs and design improvements.

Yes, Tesla developed the technology for significantly better batteries, motors and charging infrastructure BUT they have also put a lot of thought into making a far better user experience than a conventional car.

When you get in a Tesla, it feels undeniably different.

These are some of the smaller things I noticed when I got in one recently:

1. Can take Zoom calls on the big screen while driving

2. Play Mario Cart while waiting around in the carpark

3. Automatically detects dodgy activity around the car and starts doing weird things to deter thieves

4. Saves dashcam footage when you honk the horn

5. If you have a garage charging is super easy and you pretty much never have to go to a fuel station again

6. Freeway driving is enjoyable with autopilot

7. Driving with just one pedal differentiates the Tesla experience with energy-wasting driving

These easter eggs and thoughtful solutions to common use cases make a huge difference to the overall experience.

It’s how Tesla has been able to take on and beat premium German auto-makers who, through years of market dominance, had comfortably lead the market with their reputation of quality.

Why it works

What it means for you

What would your product have to do to be 10X better than the competition?

You don’t have to completely reinvent the wheel to stand out (pun intended).

Don’t try to perfect small details that no-one will care about. Focus on solving your user’s problems the competition hasn’t solved.

Genius rating:

7

/10

Tesla picked the right things to focus on. They were never going to beat the Germans on quality.

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Cameron and a CRO

Hey! I'm Cameron.

Don't miss my next conversion examples! I share a new one every Friday.

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Cameron from Conversion Examples and Converted Agency