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How Tesla capitalizes on four components of great consumer experience
Tesla may have the edge over other automakers as they make the transition to autonomous vehicles, machine learning, and cloud-based engineering. That’s because Tesla doesn’t sacrifice the thrill of driving for the ease and entertainment of mobility technology.
A new study by Group XP indicates that automakers may be failing to maintain relevance as consumer expectations turn to constant influxes of fresh engagement moments. The report, which was produced by a partnership among Brand Union, FITCH, SET, and SET Live, explores innovations in design, connectivity, and service as the key imperatives that prompt success for mobility brands. The consulting group says that consumers today feel that their lives are defined by experiences, and now, more than ever in our consumer-driven society, people are as demanding of an experience as they are of a purchase.
Businesses that have responded to this shift in expectation are flourishing, and automakers who fail to produce a vehicle that helps consumers “completely re-imagine the process of how we get from A to B” may fall significantly behind in the industry. With cars projected to transform “from being single-serving modes of transport into hyper-customizable, seamless extensions of living space,” an automaker like Tesla has been well ahead of others with its all-electric car’s visual appeal, the company’s fervent fanbase, the records for performance and quality, and for technology innovations like the Autopilot function.
How does Tesla perform according to four components of great experience brands?
The Group XP Experience Index ranks what has been called the most important marketing metric going forward: Share of Experience. Let’s see how Tesla performs.
They must stand for something unique. Tesla has never been just a carmaker, and its broad business goals make it stand apart from other automakers. The company will “build the machines that build the machine” through Gigafactory 1 in Nevada. It is a company that also builds Supercharger networks, solar roofs, battery packs for residences and businesses, and maybe even tunnel boring. No other automaker has the extensive business outreach of Tesla.
Aerial photos of Gigafactory 1 from March, 2017 reveal newly completed sections
They must deliver on our most important needs. In our high tech and often stress-filled society, people crave reliability and simplicity alongside careful construction and design. Consumers want to turn to a company that has mastered faultless execution to become a default platform brand that inspires and returns trust. Tesla knows and respects the needs of its customers and creates relationships that are amazingly personal for such a huge company. Part of that relationship-building comes from delivering a product that is exceptional in the marketplace and assertively visionary. It also offers a car that retains the traditional desired elements of suspension, acceleration, and torque.
They must provide us with exemplary content. Tesla’s user interface revolutionized the way that drivers interact with an automobile. Instead of a traditional reliance on analog buttons and switches, Tesla has provided its customers with an incredibly different interior design. Their approach has had a disruptive influence on the auto industry. The 17″ center stack touchscreen, “Easter eggs” that spark curiosity, an operating system that gets frequent wireless updates, frequently upgraded Autopilot system: all provide Tesla customers with a level of content they’ve come to expect from their smartphones.
Tesla Easter Egg transforms the vehicle into the James Bond 007 Submarine
They must utilize a higher brand purpose to make all of our future lives better. The overarching purpose of Tesla has always been to “help expedite the move from a mine-and-burn hydrocarbon economy towards a solar electric economy” as a primary sustainable solution to the planet’s warming. A Tesla driver who travels less than 350 miles per week is “energy positive” with respect to personal transportation, actually putting more energy back into the system than is consumed in transportation. Tesla co-markets sustainable energy products from other companies along with their car. All of these and more create a company who business model exceeds profitability and will have a lasting impact on our world.
As transportation becomes less intrusive, some automotive brands risk innovating themselves out of the brand equity due to their inability to meet the four elements of shared experience that today’s customers expect. Tesla, instead of adapting a metal exterior to a series of tech applications, has integrated sustainability into performance and identity. It’s an equation that other automakers are hurrying to emulate.
Tesla executive Lars Moravy appeared today in front of the U.S. Senate Commerce Committee to highlight the importance of modernizing autonomy standards by establishing a federal framework that would reward innovation and keep the country on pace with foreign rivals.
Moravy, who is Tesla’s Vice President of Vehicle Engineering, strongly advocated for Congress to enact a national framework for autonomous vehicle development and deployment, replacing the current patchwork of state-by-state rules.
These rules have slowed progress and kept companies fighting tooth-and-nail with local legislators to operate self-driving projects in controlled areas.
Tesla already has a complete Robotaxi model, and it doesn’t depend on passenger count
Moravy said the new federal framework was essential for the U.S. to “maintain its position in global technological development and grow its advanced manufacturing capabilities.
He also said in a warning to the committee that outdated regulations and approval processes would “inhibit the industry’s ability to innovate,” which could potentially lead to falling behind China.
Being part of the company leading the charge in terms of autonomous vehicle development in the U.S., Moravy highlighted Tesla’s prowess through the development of the Full Self-Driving platform. Tesla vehicles with FSD engaged average 5.1 million miles before a major collision, which outpaces that of the human driver average of roughly 699,000 miles.
Moravy also highlighted the widely cited NHTSA statistic that states that roughly 94 percent of crashes stem from human error, positioning autonomous vehicles as a path to dramatically reduce fatalities and injuries.
🚨 Tesla VP of Vehicle Engineering, Lars Moravy, appeared today before the U.S. Senate Commerce Committee to discuss the importance of outlining an efficient framework for autonomous vehicles:
— TESLARATI (@Teslarati) February 4, 2026
Skeptics sometimes point to cybersecurity concerns within self-driving vehicles, which was something that was highlighted during the Senate Commerce Committee hearing, but Moravy said, “No one has ever been able to take over control of our vehicles.”
This level of security is thanks to a core-embedded central layer, which is inaccessible from external connections. Additionally, Tesla utilizes a dual cryptographic signature from two separate individuals, keeping security high.
Moravy also dove into Tesla’s commitment to inclusive mobility by stating, “We are committed with our future products and Robotaxis to provide accessible transportation to everyone.” This has been a major point of optimism for AVs because it could help the disabled, physically incapable, the elderly, and the blind have consistent transportation.
Overall, Moravy’s testimony blended urgency about geopolitical competition, especially China, with concrete safety statistics and a vision of the advantages autonomy could bring for everyone, not only in the U.S., but around the world, as well.
Tesla launched a new configuration of the Model Y this week, bringing more complexity to its lineup of the vehicle and adding a new, lower entry point for those who require an All-Wheel-Drive car.
However, the broadening of the Model Y lineup in the United States could signal a somewhat uncomfortable reality for Tesla fans and car buyers, who have been vocal about their desire for a larger, full-size SUV.
Tesla has essentially moved in the opposite direction through its closure of the Model X and its continuing expansion of a vehicle that fits the bill for many, but not all.
Tesla brings closure to Model Y moniker with launch of new trim level
While CEO Elon Musk has said that there is the potential for the Model Y L, a longer wheelbase configuration of the vehicle, to enter the U.S. market late this year, it is not a guarantee.
Instead, Tesla has prioritized the need to develop vehicles and trim levels that cater to the future rollout of the Robotaxi ride-hailing service and a fully autonomous future.
But the company could be missing out on a massive opportunity, as SUVs are a widely popular body style in the U.S., especially for families, as the tighter confines of compact SUVs do not support the needs of a large family.
Although there are other companies out there that manufacture this body style, many are interested in sticking with Tesla because of the excellent self-driving platform, expansive charging infrastructure, and software performance the vehicles offer.
Additionally, the lack of variety from an aesthetic and feature standpoint has caused a bit of monotony throughout the Model Y lineup. Although Premium options are available, those three configurations only differ in terms of range and performance, at least for the most part, and the differences are not substantial.
Minor Expansions of the Model Y Fail to Address Family Needs for Space
Offering similar trim levels with slight differences to cater to each consumer’s needs is important. However, these vehicles keep a constant: cargo space and seating capacity.
Larger families need something that would compete with vehicles like the Chevrolet Tahoe, Ford Expedition, or Cadillac Escalade, and while the Model X was its largest offering, that is going away.
Tesla could fix this issue partially with the rollout of the Model Y L in the U.S., but only if it plans to continue offering various Model Y vehicles and expanding on its offerings with that car specifically. There have been hints toward a Cyber-inspired SUV in the past, but those hints do not seem to be a drastic focus of the company, given its autonomy mission.
Model Y Expansion Doesn’t Boost Performance, Value, or Space
You can throw all the different badges, powertrains, and range ratings on the same vehicle, it does not mean it’s going to sell better. The Model Y was already the best-selling vehicle in the world on several occasions. Adding more configurations seems to be milking it.
The true need of people, especially now that the Model X is going away, is going to be space. What vehicle fits the bill of a growing family, or one that has already outgrown the Model Y?
Not Expanding the Lineup with a New Vehicle Could Be a Missed Opportunity
The U.S. is the world’s largest market for three-row SUVs, yet Tesla’s focus on tweaking the existing Model Y ignores this. This could potentially result in the Osborne Effect, as sales of current models without capturing new customers who need more seating and versatility.
Expansions of the current Model Y offerings risk adding production complexity without addressing core demands, and given that the Model Y L is already being produced in China, it seems like it would be a reasonable decision to build a similar line in Texas.
Listening to consumers means introducing either the Model Y L here, or bringing a new, modern design to the lineup in the form of a full-size SUV.
Elon Musk
Elon Musk reiterates Tesla Optimus’ most sci-fi potential yet
Musk shared his comments in a series of posts on social media platform X.
Elon Musk recently reiterated one of the most ambitious forecasts for Tesla’s humanoid robot, Optimus, stating it could become the first real-world example of a Von Neumann machine. He also noted once more that Optimus would be Tesla’s biggest product.
Musk shared his comments in a series of posts on social media platform X.
Optimus as a von Neumann machine
In response to a post on X that pondered on sci-fi timelines becoming real, Musk wrote that “Optimus will be the first Von Neumann machine, capable of building civilization by itself on any viable planet.” In a separate post, Musk wrote that Optimus will be Tesla’s “biggest product ever,” a phrase he has used in the past to describe the humanoid robot’s importance to the electric vehicle maker.
A Von Neumann machine is a class of theoretical self-replicating systems originally proposed in the mid-20th century by the mathematician John von Neumann. In his concept, von Neumann described machines that could travel to other worlds, use local materials to create copies of themselves, and carry out large-scale tasks without outside intervention.
Elon Musk’s broader plans
Considering Musk’s comments, it appears that Optimus would eventually be capable of performing complex work autonomously in environments beyond Earth. If Optimus could achieve such a feat, it could very well unlock humanity’s capability to explore locations beyond Earth. The idea of space exploration becomes more than feasible.
Elon Musk has discussed space-based AI compute, large-scale robotic production, and the role of SpaceX’s Starship in transporting hardware and materials to other planets. While Musk did not detail how Optimus would fit with SpaceX’s exploration activities, his Von Neumann machine comments suggest he is looking at Tesla’s robotics as part of a potential interplanetary ecosystem.
Tesla exec pleads for federal framework of autonomy to U.S. Senate Committee
Tesla Model Y lineup expansion signals an uncomfortable reality for consumers
