A former fashion executive has joined Tesla Motors Inc. as the
company's vice president of North American sales, a move signaling
Chief Executive Elon Musk's aim to gear up retail operations amid
big growth plans.
Ganesh Srivats, formerly retail and strategy executive with
Burberry Group PLC, joined the Silicon Valley electric-car marker
as it works to launch an SUV and meet its 55,000-vehicle sales
target for 2015. Mr. Srivats's hiring was first reported by
Bloomberg News. He joins a brand that primarily is considered to be
a high-end luxury purchase, positioned against Porsche AG, Daimler
AG's Mercedes-Benz and BMW AG.
Tesla's retail strategy is unique among U.S. auto makers.
General Motors Co., Ford Motor Co. and Fiat Chrysler Automobiles
deal with sprawling independent dealer networks that limit the
manufacturer's control over the selling process. Tesla, relying
heavily on internet-based selling tools and nontraditional
advertising schemes, owns its retail network.
As the California auto maker grows and the Tesla models on the
road age, however, its retail strategy will have to evolve to
handle more service requests and a potential growth in deliveries.
The company also plans to go down market within the next two years
with a car priced at around $35,000, or less than half of what it
costs to buy a Model S.
The U.S. remains Tesla's biggest market, although the company is
expanding globally. In addition to a company-owned retail network,
Tesla is installing a network of fast-charging stations for its
owners to use. These superchargers juice up electric cars in a
fraction of the time it takes a traditional charger, but can become
clogged with owners in areas where Tesla is most popular.
Mr. Srivats most recently ran Burberry's America's retail
operations. His move to the auto business marks the latest in a
series of executive changes that have taken place at Tesla as it
looks to transition from being a high-price niche brand to a more
mainstream player.
Tesla earlier this month said it recorded another record sales
quarter in the April through June period, delivering 11,507 Model S
sedans over the period. Although that represents a 52% increase
over the same period in 2014, the company needs a sharp increase in
its quarterly sales pace if it hopes to meet the 55,000 target this
year.
A new seven-seat crossover SUV, the Model X, is slated to go on
sale in the second half of 2015, and Mr. Musk has said its addition
will lead to a sales increase. A lower priced Model 3 lineup of
sedans and crossovers will debut later in the decade and it will be
priced to compete with mainstream brands, including Nissan Motor
Co. and GM's Chevrolet.
Mr. Srivats couldn't immediately be reached for comment.
Write to John D. Stoll at john.stoll@wsj.com
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