Tesla Motors entered the market with their first electric vehicle called Roadster in 2008. As the company was still young, their development was based on existing technology of Lotus Elise, an existing car model made in UK. The Roadster was a two-seater sports car and was only manufactured for a few years until it was discontinued. During that time, the Roadster was sold for 100,000 USD as an innovative two-seat sports car for car enthusiasts. After discontinuing the Roadster, and rebranding into Tesla, the car manufacturer released their flagship Model S in 2012. The car was designed to be luxury, full sized car, and cost 90,000 USD for any perspective consumers. A few years later, building upon the Model S, Tesla introduced the Model X, a larger SUV model that was based upon their design of the Model S. The SUV was bigger, bolder, cost 132,000 USD and came with additional interior and cargo space, at the trade-off of distance travelled. Continuing their innovative trend, Tesla began production of Model 3 in 2017. The price of the model was 50,000 USD, and it was targeted at regular car enthusiasts. The model is meant to compete with other middle-range cars on the market such as petrol variants of some BMW's, or even the new KIA models. With continuing success and popularity of their cars, Tesla has redesigned their original Roadster, and are planning on releasing a completely Tesla built 2020 version setting customers back 300,000 USD. The Roadster is meant to be the fastest, sleekest, Tesla car yet and is aimed at sports car enthusiasts.

Explain the use of Ansoff matrix and the four strategies within it. How do you think Tesla's product development is reflected in the matrix?

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