Changing the fate of Fuel Cell Vehicles: Can lessons be learnt from Tesla Motors?

Fuel Cell Vehicles (FCVs) are a disruptive innovation and are currently looking towards niche market entry. However, commercialisation has been unsuccessful thus far and there is a limited amount of literature that can guide their market entry. In this paper a historical case study is undertaken which looks at Tesla Motors high-end encroachment market entry strategy. FCVs have been compared to Tesla vehicles due to their similarities; both are disruptive innovations, both are high cost and both are zero emission vehicles. Therefore this paper looks at what can be learned form Tesla Motors successful market entry strategy and proposes a market entry strategy for FCVs. It was found that FCVs need to enact a paradigm shift from their current market entry strategy to one of high-end encroachment. When this has been achieved FCVs will have greater potential for market penetration. •A historical case study of Tesla Automotive is done using SEC fillings and media reports.•Tesla's method of niche market entry is reviewed in detail.•Tesla's method of market entry is applied to Fuel Cell Vehicles.•Fuel Cell Vehicles should be targeted to niche markets at first.•Fuel Cell Vehicle manufactures should take an added value approach in marketing of the vehicles.