VALUE:
Tesla creates value by having attractive features such as a sleek, distinct design, giving them a differentiation advantage. They possess leading technology and a state of the art production facility, which lowers costs of producing Generation 3 vehicles. Tesla creates customer value through an online community and unique marketing strategy. Their cars run on alternative energy which creates value in the eyes of the customer as rising costs of gasoline make consumers less price sensitive to purchasing an electric car. Increased environmental awareness increases value of its products as individuals are concerned with their carbon footprint.

RARE:
Rare geographically, as they are mainly centered around growing cities with wealthy consumers. Rare in terms of physical structure as there is no other premium, electric, sports car like it in the world. Tesla's are also rare in terms of availability as they are self-operating and distributing.

IMITABILITY:
Tesla possesses deep intellectual property protected by patents, making their designs and methods hard to imitate. They have a competency in designing and building engines such as the S platform, electric power train, and cell to battery progression. Although the rising interest in electric vehicles could threaten Tesla's differentiating factor, consumers considering purchasing an electric vehicle have limited choices, and Tesla offers the highest quality, justifying its high price. Tesla serves a niche market and combines environmentally friendly cars with luxury and a sporty edge. Although the threat of new entrants is low due to strict laws and regulations, large capital investments, and strong established brands holding a big share of the market, technological innovations from existing well-established companies could pose as a threat by targeting the same niche market. This wavers their potential in