En Masse or Exclusivity?

Elon Musk, Tesla’s founder and CEO, seems reluctant to let Tesla participate in the ride-hailing business.

To quote him, “I think there will be some amount of car-sharing for sure, but I think there’s like a limit to the whole sharing thing.”

According to Everett Roger’s Diffusion of Innovations, for Tesla to reach en masse, it needs to be available to more consumers, to move beyond early adopters’ stage such that its market share could automatically take off.

Everett Roger’s Diffusion of Innovations
[Image Credit: Wikipedia]

With an average of $ 70,000-80,000 price tag, Tesla’s best route to reach early and late majority stages would be participating in the ride-hailing business.

Understandably, Musk would like to protect Tesla’s prestige image, therefore limiting Tesla’s availability to any Tom, Dick and Harry on the street.

As Tesla prices fall, its market share will increase to meet demand for late majority sales. With the Tesla Model 3 delivering record pre-production orders, we may yet see its whisper quiet ride in a ride-hailing future after all.

 

[News Source: Business Insider]

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