This eCommerce brand designs and produces aftermarket aero-efficient performance covers for Tesla wheels. Their patent-pending product range developed with quality and innovation, conceals curb rash, improves efficiency, and enhances the vehicle’s battery range. The company’s deep relationships with its suppliers and strong relationships with Tesla influencers in the industry have helped grow its fan base network. With a 17% repeat customer rate and an average order value of $230, they are targeting upper-middle-class males aged 30-50 with a disposable income who value quality over cost.
All manufacturing processes take place in the US, exclusively through two major suppliers who handle shipping via LTL or FLT. The company owns the tooling and doesn’t license any other parties. Inventory is maintained at two 3PL warehouses, and between one to three months’ worth of merchandise is held due to recent material supply shortages.
All products are designed, manufactured and shipped via two major suppliers—an injection molder and a painter, both based in the Midwest. The company owns the tooling, meaning production can be moved to a different supplier if necessary. The business exclusively produces covers for Tesla Models Y and 3, accounting for 44% and 32% of sales, respectively.
MARKETING AND KEY METRICS
The company’s digital marketing strategy started with Facebook Ads to create buzz around its crowdfunding campaigns. The brand generates most of its traffic from promotions and discounts coupled with Google Ads, email campaigns and social media content creation. They have strong relationships with Tesla influencers and YouTubers, many of whom cover the products for no compensation.
Sales have primarily occurred organically, with minimal marketing efforts. The brand is setting up Amazon listings this fall, expecting a significant percentage of sales from the eCommerce giant by spring 2023. With a strategic position in the EV aftermarket space, a secure path forward, and vast growth potential, there is an SBA pre-qualified opportunity for a low-risk investment that does not require significant capital.
The company generates a gross income of $2.2M, with a net profit growth of 37%. They have a 17% repeat customer rate and an average order value of $230. Their product range includes 9 proprietary SKUs, which account for more than 16,000 sales.
The company’s typical target customer is an eco-conscious, upper-middle-class male Tesla owner aged 30-50 with a disposable income. The business has generated over 16,000 sales and has deep relationships with influencers in the Tesla world, accounting for a large portion of their customer base.
BUSINESS MODEL & RESOURCES NEEDED
The company has one COO who is an engineer by trade and almost entirely runs the business. The products are designed in-house by him. The business has a proven and patent-pending mounting system that requires minimal R&D and can apply across any wheel.
Aftermarket car accessories for electric vehicles has become a growth industry due to Tesla’s growing popularity. Recent data illustrates that Tesla accounted for 79% of the electric car sales in the US in 2021 alone. The high demand has created opportunities for businesses that cater towards Tesla’s affluent and eco-conscious customer base. Examples of these businesses include other accessory product lines for Tesla such as Tesla charging stations, wall adapters, and covers/shields for various parts like seat covers or center consoles.
OPPORTUNITIES TO SCALE
The brand is strategically positioned to develop new products on a low-risk base. They have a patented mounting system that can be applied to any wheel with minimal R&D. The brand is considering expanding beyond wheel covers to original equipment manufacturer products. As Tesla continues to grow, new model releases (such as the Cybertruck) present exciting opportunities for the company to expand production and sales.
Asking Price: $2,900,000
Gross Income: $2,208,576
Cash Flow: $906,087
Year Established: 2018