Q: How much is the car?

A: We have no idea. Coz our policy in China is not determined yet at the moment.

Q: When can I have my car?

A: I can’t give you a specific date coz the sales procedure is not completed now.

Q: Will you open a 4S store in Guangzhou.

A: I don’t know, maybe next year or later.

Q: I think…… anything else you could tell me about the car?

A: OK. If you want to get your car before next year, you have to make the down payment USD 40,000 this week. Or you will not be the first owners of the car in China. Nearly 30,000 people in China have made the order andwe currently only sell it to entrepreneurs with creative mind….

What car? Yes,Tesla.

This is a real conversation before I become the first owners of Tesla in China. Tesla Motors is now a miracle in America. Tesla’s electric cars, founder, stock, success business mode and innovation become a hot topic in cars and IT fields. The reason is that other American new energy automobile enterprises or associative Auto Parts enterprises like CODA, Fisker, A123, Better Place are going bankrupt or deficit. However, Tesla has already get profits at thefirst season of this year, making a miracle in electric cars field.

Precise orientation in limousine market is the major success of Tesla. Tesla is just doing a simple business. Position the -target customer to limousine users who care little about the price. Making the car superior and expensive (To solve the extended-range and safety problem first.), adopting new material like aluminium alloy to reduce weight, making celebrities like Tom Hanks and Google founders to become Tesla owners, with both advantages of electric car and limousine — fast and quiet, Tesla has the quality, as well as the price of limousine. By properly cost control, Tesla has much more gross profits in one car than competitors. Tesla has a similar price as BMW 7 Series of USD70,000 and almost same user experience, while its competitor, Chevrolet Volt, only makes its price at USD30,000, with the similar user experience as COROLLA at a price of USD15,000.

There is a point, Tesla only sells electric cars through its own branded store without the third-party distributors. This unusual business mode made the automobile distributors in New York State unsatisfied. Tesla reconstructed business mode and cut down automobile distributors’ profit. Cars companies can now talk to end users directly and all the profits go to their own wallet. This is the key to Tesla’s success.

Traditional distributor mode of automobile sales has been applied for almost a whole century. Cutting down distributors seems impossible in traditional business mode widespread year. But Tesla succeeded. Internet made to communicate with consumers directly. Manufacturers become “we media”. Once you have special and attractive stories, Internet can make you a super star within a few minutes. It’s cheap and even zero cost. Teslauses its founder Elon Musk’s brilliant entrepreneurship sample of creating PayPal, Space X and so on to create a hero as Ironman, making target customers incented to buy Tesla products for admiration.

“People sniff at you if you are driving Ferrari, but admire you if you are driving an electric car”. Moreover, Tesla has a surprising appearance and can give you the same driving experience as an Aston Martin. This is the real inner thought of Tesla customers.

Tesla is well known on the Internet. But it’s not enough to push customers to pay their money. So Tesla built 15 experience centers at least all over America. Users can book experience opportunity online. I have experienced this process at Tesla Experience Center in L.A.. It’s the best test drive which I’ve ever experienced. I’ve already made the down payment before we went to the center. We happened to have two hours’ free time that day in L.A. So we went straight to the center. Seeing a red Tesla Model S at the shopping center square, I proposed to take a drive. But the handsome guide said: “Sorry, it’s not available right now. You may make an appointment for test driving at next week.” I reply him: “Why? I am a granted owner. And I am going back to china tomorrow.” He looked at me for a moment suspiciously. I guess he is doubting: how this common Asian man could be a granted owner? Aren’t granted owners rich men like Bill Gates? I took out my mobile phone to show him the payment record at once. It worked! He smiled and asked me to wait a minute. And he comes back after a while and said: “Dear sir, you are lucky. We have a client not available today. Let’s go right now!” Money is really helpful in these days.

Elegant design, 17 inch grand screen display replaced all buttons, always online with iPhone remote control, 0-100km/h sprint completed in 4 seconds, this is the car I dream. The bright screen is the most impressing. Long waiting continues after the experience.

Let’s make a calculation. Almost 30,000 people in China have made the down payment and keep waiting for the car. Each one has paid USD40,000. So there is over 1 billion dollars sent to Tesla directly without any brokers. Its current annual output is only 20,000 cars. Tesla can occupy the money for more than one year. What a brilliant financial business!

To sum up, Tesla makes full use of superior products and Internet online and offline crossover perception to satisfy end users’ purchase desire, controlling the profit allocation during the whole process. This is the key to traditional industries to make disruptive innovation. You don’t have to own revolutionary technology. Tesla doesn’t have revolutionary technology but integrated existing advanced technology. Integrated technology resource is the first element and reconstructed business mode is the second.

PHNIX(http://www.phnix-e.com) is kind of similar to Tesla in product and Internet business mode design. We now still have a lot to do. And this is just what we are going to do. It’s the key to success in the increasing fierce business competition in the future.




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