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Discussion in 'Tesla, Inc.' started by bonnie, Jul 10, 2015.
Tesla Hires Ex-Burberry Executive to Lead North American Sales - Bloomberg Business
I am sorry, I don't get it. Why does Tesla need an executive from the fashion world ? Do you think they will get to profitability by just selling overpriced Tesla apparels and coffee mugs, or is the new VP expected to boost sales on their core business - selling cars?
And if Model 3 is their ticket to profitability and to establishing themselves as a mainstream player, then I fully expect it to be a consumer car that reaches middle class with none of the overpriced fluff interiors - and again not sure how Mr. Srivat's background and experience helps there.
What Tesla needs is not a VP for sales, but someone who breaths quality control in every aspect of design, testing and production.
I'm coming from a tech and luxury fashion background with hardcore finance and I understand the hire. I worked at a competitor of Burberry's.
This guy was hired for a few reasons, he knows how to sell to customers that are Tesla's main target for now (model s and x customers on the upper echelon of the income scale). More importantly, the sales position is a De facto brand development position. Burberry as a brand throughout the years bolstered and worked on their branding heavily. I think Tesla would definitely benefit from this. I see Tesla as 1980's BMW which is in the affordable for the main populace if I stretch my wallet kind of car company, but will get to the present BMW when model 3 is released.
He doesn't need to breathe into design, testing and production. He needs to understand how all those work together and there is no doubt he does. The luxury brands are vertically integrated like Tesla and have to manage complex supply chains that all relate to sales.
He is to become Vice President of Sales in North America. Not accessories in North America.
Model 3 will start at $35k. That is upper middle class. Sure there will be some folks from smack in the middle of the income scale but the bulk of sales will be to the upper middle class with an Average Selling Price for the M3 of ~$50k.
Apple has also hired former Burberry executives. Tesla says they sell premium electric vehicles. True, they have never used the word "luxury" but "premium" is a luxury adjacent.
Model 3 is targeting the BMW 3 Series segment not Toyota Corolla or Ford Focus segment.