In October 2014, Tesla Motors CEO Elon Musk created great anticipation over a ‘product upgrade’ event by tweeting a clue a week before the event. Tesla’s stock prices had risen following the announcement, indicating the confidence investors had in Tesla for introducing a game-changer in the automotive industry. I too was caught in the web of social media excitement and felt an eagerness to know what this highly innovative company had in store for the world.
Sadly, the ‘Big Reveal’ turned out to be a ‘Big Disappointment’ for many: the upgrades were not up to the expectations. However, I would not blame Elon Musk for not delivering enough on the hype created. Tesla Motors came into the automotive industry with a disruptive innovation; the general public was amazed and has since then set this high level of expectation from Tesla.
Tesla CEO Elon Musk at the Tesla D Event. Source: businessinsider.com
I would also defend Tesla on the grounds that the upgrades announced are still innovative and new. The Auto Pilot feature, for example, is the first of its kind in the market. While it may not be a huge upgrade, I would still say a car capable of parking itself in a garage once on a driveway or automatically changing lanes by putting on turn signals, is rather impressive. It adds to the list of features in Tesla’s value proposition to customers.
I believe that by this announcement CEO Elon Musk is guiding Tesla Motors along the right track of differentiating its product in its overall focus strategy.
Sources:
http://www.cnbc.com/id/102076711#.
http://www.forbes.com/sites/samanthasharf/2014/10/10/tesla-unveil-disappoints-costs-elon-musk-more-than-500-million/