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Tesla loses business customers - Expert explains the reasons and the impact on the electric car pioneer

(ots/fn/fk) Tesla, the American pioneer in electric mobility, is facing a growing problem: the brand is failing to convince major corporate clients and company car drivers, including SAP. In 2023, the share of company cars for the Model 3 and Model Y was significantly below the industry average, indicating a critical development.

Business customers are turning away from Tesla - an expert reveals the reasons and what this means for the e-car pioneer. (Photo: Blomst/pixabay)
Business customers are turning away from Tesla - an expert reveals the reasons and what this means for the e-car pioneer. (Photo: Blomst/pixabay)
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von Franziska Neuner

The list prices at Tesla fluctuate enormously, and there is one special discount after another. For large customers like SAP, this brings planning difficulties and high financial risk – exactly what companies want to avoid. In this article, you will learn about the exact causes of the decline in numbers and what this means for Tesla.

Causes for the Decline in Numbers

Although Tesla impresses with its innovative technology, customers frequently report poor craftsmanship and technical defects. This is particularly concerning for business customers who rely on the high reliability of their vehicles.

While Tesla generally has a growing network of service centers, there are increasing reports of long wait times and significant difficulties in scheduling appointments. This is a real problem, especially since bodywork repairs can be extremely expensive, particularly for models like the Model Y.

This vehicle is not composed of numerous individual components like other cars but is made from aluminum die-casting. Although this saves production costs, it leads to increased repair costs. Business customers require absolute reliability and quick service here to minimize downtime.

Another issue is that while Tesla is a pioneer in the field of e-mobility, their vehicles are often more expensive than competitor models from Audi, BMW, and Mercedes, which also offer powerful electric cars. Business customers, in particular, are generally looking for the best possible cost-benefit ratio.

Additionally, Tesla's fluctuating list prices complicate budgeting. As if that wasn't enough, the public perception of Tesla CEO Elon Musk is deterring more and more customers. Many companies do not want to be associated with the controversial statements and unpredictable decisions of a CEO who regularly makes headlines.

This is what the loss of business customers means for Tesla

For Tesla, the decline in numbers is a major problem. On the one hand, the loss of business customers results in significant revenue losses, as they constitute a large proportion of buyers of vehicle fleets.

On the other hand, the fact that several reputable companies such as SAP are giving up their Tesla fleets could also affect the brand's image and possibly even impact the private customer sector.

A negative reputation among business customers could generally cast the brand in a poorer light - and thus deter potential new customers.

The Importance of a Stable Corporate Policy

In light of the critical developments currently unfolding at Tesla, it is all the more important for the company to adapt its strategy promptly. This could involve changes in service, quality, and pricing. Improved service quality and a more stable pricing structure could help regain the trust of business customers.

It remains noteworthy that Tesla has revolutionized the electric mobility market - and thus continues to be a significant player in the industry. However, to remain successful in the business customer segment in the future, the company must offer more than just innovative products.

Excellent service, a stable corporate policy, and high quality are crucial to regaining the trust of business customers - and establishing itself as a reliable partner in the long term.

About the Expert

Sascha Röwekamp is the founder and CEO of the consulting firm RWKMP®. Together with his team, he supports and accompanies CEOs and owners of brand-affiliated car dealerships through their transformation into the sales of the future. The RWKMP® team fuses sales, marketing, and digitization into a single concept. For more information, visit: rwkmp.de

Translated automatically from German.
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