The shares of Tesla Motors are trading higher following reports that the company hired a former Burberry senior executive to boost its sales and reputation in the luxury automobile market.
The stock price of Tesla Motors increased more than 1% to $260.91 per share at the time of this writing, around 12.23 in the afternoon in New York.
Tesla hires Ganesh Srivats
Tesla Motors hired Ganesh Srivats, a former senior vice president at Burberry. According to the electric car manufacturer, Srivats will serve as vice president of its North American sales to help extend Tesla’s brand into an exceptional lifestyle experience along with its high-tech image.
Commenting on Srivats appointment, Scott Galloway, a professor of marketing at New York University’s Stern School of Business, told Bloomberg, This makes all the sense in the world. Tesla is not an automobile company; it’s a luxury company.”
On the other hand, Milton Pedraza, chief executive officer at Luxury Institute commented, Srivats absolutely bring a client-centric approach to doing business. It’s about long-term relationships, not a transaction. Burberry is the master of client relationship.”
Meanwhile, Ken Harris, managing partner at Cadent Consulting Group said, “If Tesla is thinking that they are selling a lifestyle and a way of thinking; then someone from Burberry could be the right choice.” He also noted that Burberry was one of the first luxury brands to embrace digital innovation.
Tesla sales target
Last March, Tesla Motors announced its decision to re-assign Jerome Guillen, its vice president of global sales and services to a new role focused on delivery and long-term customer care. The electric car manufacturer also announced its intention to hire new executives to lead its regional sales operation.
The electric car manufacturer aims to sell 55,000 vehicles this year. The company already delivered 21,552 Model S units during the first six months of this year. Tesla CEO Elon Musk recently stated that the Model X will double the company’s sales volume.
Tesla Design Collection
According to Bloomberg, high-end automakers are also selling expensive clothing and accessories to increase revenue and deepen their customer relationships.
The Tesla Design Collection includes a $300 tote bag, $100 sheepskin leather driving gloves and a $40 iPhone sleeve. The electric car manufacturer is also selling T-shirts and messenger bags.