Tesla Model Y: A Comprehensive Analysis of Product Attributes, Market Performance, and Consumer Satisfaction

1. Introduction

This investigative report aims to evaluate the Tesla Model Y as a product in the automobile consumer market and analyze its achievements. The Tesla Model Y, launched on March 14th, 2019, has been positioned as a key player in the electric vehicle (EV) market. Tesla has projected that the Model Y will surpass the combined sales of its other models, including the Model S, Model X, and Model 3.

This report will delve into the Model Y's product attributes, including its design, performance, range, safety, and technology. It will also analyze its market performance in terms of sales amount, volume, market share, and customer satisfaction. Finally, the report will assess the implications of the Model Y's success for Tesla, the broader business environment, and the impact on customers.

2. Analysis of primary and secondary sources of information and data collected:

2.1 Product attributes of Model Y

The Tesla Model Y is a compact SUV equipped with a full-time four-wheel drive system and a high-performance battery pack with a driving range exceeding 300 miles (about 482 kilometers). It features a front-mounted intelligent sensor driving assistance system and a 12.3-inch central control screen. The Model Y is Tesla's most cost-effective model to date, positioned as a family-oriented vehicle with seating for up to seven passengers and ample cargo space. It is also marketed as a high-performance car, boasting an acceleration of 0 to 60 mph in 3.5 seconds and a top speed of 150 mph. The Model Y is also promoted as an eco-friendly car, running on electricity and emitting zero emissions. Tesla has positioned the Model Y as a premium car, reflected in its pricing, with a base price of $39,000, higher than the base price of the Model 3. Higher-end versions of the Model Y are priced at $47,000 and $60,000, respectively.

Key product attributes include:

• Design: The Model Y boasts a sleek and modern design, characteristic of Tesla's vehicles. It features a low, aerodynamic profile with a sloping roofline that contributes to its sporty appearance. Lightweight materials, such as aluminum and steel, are used in its construction, further enhancing its range and agility. The SUV features a panoramic glass roof and a power liftgate for convenient cargo access.
• Performance: The Model Y is a high-performance electric vehicle with an acceleration of 0 to 60 mph in 3.5 seconds. It utilizes two electric motors, one on the front axle and one on the rear, providing all-wheel drive capability. The Model Y's top speed of 150 mph makes it one of the fastest electric SUVs on the market. Its low center of gravity enhances handling and stability on the road.
• Range: The Model Y boasts an impressive range of up to 326 miles on a single charge, making it one of the longest-range electric SUVs available. This is achieved through its lightweight design, aerodynamic profile, and efficient electric motors. It also offers a variety of charging options, including home charging, Supercharging, and Destination Charging.
• Safety: The Model Y is equipped with a suite of advanced safety features, including Tesla's Autopilot, a driver assistance system that aids steering, braking, and acceleration. It also incorporates active safety features such as forward collision warning, automatic emergency braking, and lane departure warning. The SUV has earned top safety ratings from organizations like the National Highway Traffic Safety Administration (NHTSA) and the Insurance Institute for Highway Safety (IIHS).
• Technology: The Model Y features a large 15-inch touchscreen display that controls all vehicle functions, including climate control, entertainment, and navigation. It also offers connectivity features like Bluetooth, Wi-Fi, and a mobile app for remote vehicle control. The Model Y includes a premium audio system with excellent sound quality.

2.2 Sales amount and other sales figures of Model Y

Analyzing the sales amount and other sales figures of the Model Y in the US market provides insights into its market performance:

1. Sales Amount: Comparing the Model Y's sales amount with its competitors, particularly Tesla's own Model 3, reveals its strong performance. Tesla's Q3 2021 earnings report showed the Model Y contributed 43% of the company's total revenue, amounting to $13.8 billion, surpassing the Model 3's 33% contribution, which was $10.1 billion. This indicates the Model Y is outperforming the Model 3 in terms of sales amount.
2. Sales Volume: The Model Y's sales volume also points to strong demand. In Q3 2021, Tesla delivered 241,300 Model Y vehicles, a 98% increase compared to the same period in 2020. This signifies the Model Y is selling well.
3. Market Share: Examining the Model Y's market share compared to competitors highlights its success. An IHS Markit report found the Model Y to be the best-selling electric vehicle in the US in the first half of 2021, with a market share of 5.3%. This was followed by the Chevrolet Bolt with 4.6% and the Tesla Model 3 with 3.6%, demonstrating the Model Y's strong position in the US market and its growing market share.
4. Customer Satisfaction: Customer satisfaction is another critical aspect. A Consumer Reports survey ranked the Model Y as the top luxury compact SUV with a score of 89 out of 100. It outperformed the Audi Q5 (83) and BMW X3 (82), highlighting the Model Y's high customer satisfaction ratings.

In conclusion, the data analysis indicates the Model Y is performing well across sales amount, sales volume, market share, and customer satisfaction compared to its competitors. It is experiencing strong demand and is gaining market share in the US market.

2.3 Product competitiveness of Model Y

The Tesla Model Y is a highly anticipated electric SUV designed to compete with other luxury SUVs in the market. It offers a more affordable option compared to the Model X, while still boasting impressive performance, range, and technology, making it a compelling choice for consumers.

Factors contributing to the Model Y's competitiveness:

1. Range and Performance: The Model Y offers an impressive range of up to 326 miles on a single charge, making it one of the longest-range electric SUVs. It has a top speed of 150 mph and accelerates from 0 to 60 mph in 3.5 seconds, exceeding the performance of most gas-powered SUVs. The Model Y also comes standard with all-wheel drive, providing enhanced traction and handling in all weather conditions.
2. Technology: The Model Y is equipped with advanced technology features not commonly found in other SUVs. It features a large 15-inch touchscreen display that controls most of the car's functions, including navigation, media, and climate control. It also comes with Tesla's Autopilot system, which provides semi-autonomous driving capabilities such as lane departure warnings, automatic emergency braking, and adaptive cruise control. The Model Y boasts a variety of safety features designed to protect passengers and prevent accidents, including eight cameras, twelve ultrasonic sensors, and a forward-facing radar for a 360-degree view of the vehicle's surroundings. The Autopilot system further enhances safety with features like automatic lane changing, summon, and auto park.
3. Design: The Tesla Model Y showcases a sleek and modern design that is both functional and aesthetically pleasing. Its low profile and sloping roofline give it a sporty look, while the minimalist grille adds to its clean and elegant appearance. The Model Y offers a spacious interior that can comfortably seat up to seven passengers, with foldable rear seats to create additional cargo space.
4. Interior: The Model Y's interior is spacious and comfortable, accommodating up to seven passengers. The second-row seats can be folded down for additional cargo space. The vehicle features a 15-inch touchscreen display that controls most of its functions, including entertainment, navigation, and climate control. The Model Y also includes a panoramic glass roof for a clear view of the sky.
5. Pricing: The Model Y's pricing is competitive compared to other luxury SUVs. The base model starts at $41,190, significantly less than the Model X, which starts at $89,990. The Model Y also qualifies for federal tax credits of up to $7,500, further reducing the cost of ownership.
6. Brand Reputation: Tesla enjoys a strong brand reputation for producing high-quality electric vehicles that are innovative and technologically advanced. The Model Y reflects this reputation and has received positive reviews from critics and consumers alike. Tesla's brand reputation also contributes to the Model Y's resale value, making it a more attractive option for consumers.

Survey Insights:

To gain further insights into the Model Y's competitiveness, a questionnaire was published online, resulting in 53 responses. The questionnaire focused on factors considered by potential car buyers. The results revealed that performance was a top priority for respondents, with 86.79% expressing strong concern. Safety was the second most important feature, followed by fuel efficiency, brand reputation, and environmental impact. However, design/appearance was considered very important by only 22.64% of respondents. In terms of pricing, 18 out of 53 respondents considered the Model Y's price similar to other electric SUVs, while 24 considered it more expensive, and 11 thought it was cheaper. When it came to purchase intent, 15.09% of respondents indicated a high likelihood of purchasing a Model Y in the next two years, and 41.51% expressed some likelihood.

2.4 Consumer satisfaction of Model Y

• Data Collection and Analysis: To gauge consumer satisfaction with the Model Y, a thorough analysis of customer reviews, online forums, and independent surveys will be conducted. This data will be analyzed to identify key areas of satisfaction and dissatisfaction, as well as recurring themes and trends among consumer feedback.
• Comparison with Competitors: Consumer satisfaction with the Model Y will be compared to that of its direct competitors in the luxury SUV segment. This comparison will focus on key performance indicators (KPIs) such as reliability, driving experience, features, and value for money. * Identifying Trends and Patterns: A close examination of consumer feedback will reveal emerging trends and patterns related to consumer satisfaction with the Model Y. This analysis will identify specific aspects of the vehicle that contribute to high satisfaction levels, as well as areas where improvements can be made.
• Qualitative and Quantitative Data: A combination of qualitative and quantitative data will be used to provide a comprehensive understanding of consumer satisfaction with the Model Y. Qualitative data will provide insights into customer experiences and opinions, while quantitative data will provide a numerical representation of satisfaction levels.

3. Assessment of the implications of these effects on the chosen organization or organizations in relation to the organization, the business environment, and the impact upon customers and reference to concepts and topics studied within the Group Award.

• Organizational Implications: The Model Y's success has significant implications for Tesla. It has boosted revenue and solidified its position as a leading player in the electric vehicle market. The company's commitment to innovation and its focus on sustainable transportation are resonating with consumers. However, Tesla faces challenges in scaling production to meet growing demand while maintaining quality standards.
• Business Environment: The Model Y's success is transforming the automotive industry. It has accelerated the adoption of electric vehicles and prompted competitors to invest in their own electric car programs. The Model Y's popularity has also increased consumer awareness and interest in sustainable transportation.
• Impact on Customers: The Model Y offers customers a compelling combination of performance, technology, range, and style. It has also led to the development of robust charging infrastructure, making electric vehicle ownership more convenient for customers. However, Tesla's pricing strategy and customer service practices have been subject to criticism.
• Group Award Concepts: The Model Y's success can be analyzed through the lens of various concepts studied within the Group Award framework, such as Porter's Five Forces, SWOT analysis, and strategic management.

4. Conclusions and recommendations explicitly related to the issues being investigated and the needs of customers.

• Conclusions: The Tesla Model Y is a highly successful electric SUV that has captured significant market share and consumer interest. Its impressive range, performance, technology, and design have positioned it as a strong competitor in the luxury SUV segment. Tesla's brand reputation and its commitment to sustainable transportation have also played a crucial role in its success. However, Tesla faces challenges in scaling production, maintaining quality, and addressing customer service concerns.
• Recommendations: To maintain its competitive edge and further enhance customer satisfaction, Tesla should consider the following recommendations:
  • Scaling Production: Invest in expanding production capacity to meet growing demand while ensuring quality control and consistency.
  • Customer Service: Improve customer service practices by enhancing communication, streamlining processes, and addressing customer concerns promptly.
  • Pricing Strategy: Explore strategies to make the Model Y more accessible to a broader range of customers, potentially introducing a more affordable base model.
  • Sustainability: Continue to focus on sustainability initiatives, including the use of renewable energy and responsible sourcing of materials.

5. References

• Tesla Q3 2021 Earnings Report
• IHS Markit Report
• Consumer Reports Survey
• Online Customer Reviews and Forums

6. Appendices

• Appendix 1: Questionnaire Sample
• Appendix 2: Questionnaire Results
• Appendix 3: Questionnaire Transcript