What Tesla Motors Inc (TSLA) Learned From Apple Inc. (AAPL)

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Compare those figures with an electric range of 38 miles and a 0-to-60 time of 8.9 seconds for the Volt, and you can see the appeal for high-end buyers, who may be willing to pay a premium.

The parallel here is that when the iPhone was introduced, Apple Inc. (NASDAQ:AAPL) was charging $499 or more at a time when you could get a new phone for free with a contract. But the product was so revolutionary and so technologically advanced that the performance outweighed the cost. The same model has worked for Tesla.

Control distribution
Tesla has shunned the traditional automotive distribution model for a company-owned distribution network. This approach gives Tesla control over the look and feel of stores and allows the company to control the sales process. With limited stores, there’s also an aura of exclusivity.

Source: Wikimedia.

With its own distribution network, it’s also easier to explain how an electric vehicle works and what’s needed to make the transition to electric than if Tesla had partnered with another distribution network.

This approach is very similar to when Apple Inc. (NASDAQ:AAPL) began launching its own stores. Instead of going through Best Buy Co., Inc. (NYSE:BBY) or other traditional outlets, it was able to control the shopping experience, and the Apple Store became an iconic part of Apple.

Foolish bottom line
Tesla has upended conventional business practices in the car business and taken many of its cues from Apple’s success. I think that’s a formula for continued success in a growing electric-car market.

The article 3 Lessons Tesla Motors Learned From Apple originally appeared on Fool.com is written by Travis Hoium.

Fool contributor Travis Hoium manages an account that owns shares of Apple. The Motley Fool recommends Apple, General Motors, and Tesla Motors and owns shares of Apple and Tesla Motors.

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