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Tesla’s Developing Network

Known for their electric cars, Tesla Motors is selling their cars throughout the US without a middleman. They are not using dealerships as the typical car company does. Rather, they sell their cars at showrooms owned by Tesla. Because auto sales are regulated by state, Tesla cannot sell their cars in Texas. In addition to this unique strategy of putting their cars out in the market, Tesla cars require charging. In order for Tesla cars to be possible in the US, Tesla is building various charging stations. These stations are now being set up across the US creating a whole network of Tesla owners. Having the stations across the US allows Tesla owners to travel long distances, as opposed to just staying local, because they can stop at one of the charging stations.

Tesla is doing something different with their sales. Rather than using acquaintances and building strong ties with dealerships, they are choosing to independently sell their cars. This is creating their own network and preventing them from joining the current auto sales network. If they have connections with some dealerships, they are most likely weak ties. Also, there is no bridge between Tesla and other companies since Tesla is not using dealerships. Since Texas won’t allow Tesla to sell in their state, states have the capability to prevent this network from expanding.

Another interesting aspect of Tesla is how they are spreading the network of owners by building more charging stations. Each station almost serves as a node, and then edges are forming between those stations. The higher concentration of stations in Manhattan mean that is more likely the network of Tesla owners will increase in size and lead to increased popularity. By building the stations throughout the US, it is creating a larger network. Before the stations were more available, Tesla owners were primarily spread out by the few locations. Now the network is able to expand due to the higher concentration of stations.

Sources:

http://blogs.wsj.com/digits/2015/08/13/tesla-brings-wide-recharging-network-to-manhattan/

http://money.cnn.com/2013/05/20/autos/telsa-car-dealers/

http://www.greencarreports.com/news/1097109_tesla-supercharger-network-growth-surges-over-last-14-months

 

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