Tesla car with aftermarket trim

Aftermarket Trim Accessories Brand for Tesla Model Vehicles: 38% YOY Growth, 37% Net Profit, Patents Pending

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This eCommerce brand offers stylish and efficient aftermarket trim accessories specifically designed for Tesla model vehicles. They have a proprietary collection of products that drive profitability, including patented innovations pending. With strong relationships with suppliers, the business is expanding to sell on Amazon and to launch new product lines to reach more customers. The auto parts industry is valued at $341 billion and projected to grow to $67 billion by 2020. This online brand targets a middle-class male audience aged between 30-50 years old, with Tesla vehicles and preferred quality over cost.

OPERATIONS

All operations, from inventory management to order fulfillment, are handled through their website and 3PL warehouses. The owner spends 20 hours per week handling financials and strategy. Their inventory management system ensures orders are fulfilled at a high standard, and enough inventory is available to keep up with high volume demand.

Products, designed and made in the USA, using quality materials and innovative design, are sold directly to the customer under the business’s brand name. The company keeps 3 months’ worth of inventory on hand to ensure fulfillment is consistent and shipped out in a timely manner. Plastic orders are being submitted every few months to support the manufacturing of their products.

MARKETING AND KEY METRICS

The business employs an effective marketing campaign to connect with influencers within the Tesla network and utilizes emails, PPC ads on Google, YouTube, and Facebook, SEO, and referral-based marketing with their Repeat Customer Rate rising to 17%. The company has just moved their listings to sell on Amazon to diversify their sales channels.

Since their partnership with influencers on YouTube and strong email and referral-based marketing campaigns, traffic to their website has increased, with an average of 35,490+ unique monthly visitors. The company’s recent move to selling on Amazon as an additional sales channel sees the company positioned for growth in the years to come. Scaling opportunities include adding new product lines, selling to additional marketplaces and expanding to reach other electric vehicle owners.

Average Order Value stands at $239, with repeat orders from existing customers, generating a Repeat Customer Rate that is currently at 17% and rising. Their sales have increased 31% this year compared to 2021, with net profits rising by 35%. The projected earnings for Spring 2023 are significantly higher due to their Amazon listings. They average around 10-30 shipments daily with a turnaround of 24 hours.

The company targets Tesla Model owners, specifically a middle-class man between the age of 30-50 with disposable income, and who highly values quality over cost. The business has 12,000+ successful orders with repeat orders from replacement kits, and due to strategic partnerships with influencers, they have established a very loyal customer base who leave overwhelmingly positive reviews.

BUSINESS MODEL & RESOURCES NEEDED

The current owners spend a limited amount of time (up to 20 hours per week) handling financials and strategy. The business is operated by a small remote team that manages inventory and focuses on fulfilling orders to a high standard.

THE INDUSTRY

The automotive industry is rapidly growing, with 284 million cars registered in the U.S. alone. The demand for auto parts is rising, with the light-duty parts industry valued at $341 billion and the automotive aftermarket industry valued at $39 billion. This online business targets a niche market of Tesla owners with a willingness to purchase auto accessories online and who value attractive design and quality materials.

OPPORTUNITIES TO SCALE

Scaling opportunities for this business include expanding product lines to include other models of EVs, adding more types of accessories, and selling on additional marketplaces such as eBay and Walmart. The business should consider strategic partnerships, improved referral-based marketing, and decentralized inventory management facilities to enable scaling.

Asking Price: $3,200,000
Gross Income: $2,500,391
Cash Flow: $1,001,693
Year Established: 2019
Employees: 1

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