GEB4935 Chapter 1 Submission

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Palm Beach State College *

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4935

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Business

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Feb 20, 2024

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pdf

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1 TESLA, Chapter 1 Gonzalo Amsler, Anne Marie Campion, Jessica Mhna, Macaila Ryan, Matteo Villamizar Palm Beach State College, Department of Business GEB4935 Capstone Experience: General Management Dr. Brooke Coslett January 30, 2024
TESLA 2 Abstract 2
TESLA 3 Introduction to the Organization Tesla is one of the most recognizable American-owned companies. It is headquartered in Austin, Texas, and is focused on building vehicles to accelerate the world's transition to sustainable energy. Tesla's motto is "We're building a world powered by solar energy, running on batteries and transported by electric vehicles" (Tesla). The company was founded in 2003 by entrepreneurs Martin Eberhard and Marc Tarpenning. Tesla's name originates from the inventor and engineer Nikola Tesla. After contributing $30 million to the start-up of Tesla, Elon Musk served as the company's chairman in 2004. He became the Chief Executive Officer in 2008 after becoming the largest shareholder. Tesla has many different car models currently available on the market. The first model was the Roadstar, followed by the Model S in 2012. Then came the Model X, the SUV that rolled out in 2015, and the Model 3, the sedan, in 2017. The Model 3 is the first electric car model that sold over a million units globally. After the success of the Model 3, Tesla rolled out the Model Y crossover in 2020. Tesla continued to provide innovation options for consumers, like in 2022 when it introduced the Tesla semi-truck. The Cybertruck, commonly referred to, is their version of a classic pickup truck in an electric version. In addition to the car models, Tesla also focused on solar panels by purchasing SolarCity in 2016, a 2.6 billion dollar deal. Tesla solar power produces energy for residential and commercial needs. The solar panels generate energy from the sun, and the Powerwall is a large battery used to store power when the sun is not shining and in case of an emergency power outage. Tesla also offers a competitive and powerful battery lineup called the Megapack. The Megapack, as the future of energy, relies on large-scale storage. It is designed to store energy 3
TESLA 4 from the sun while preventing any outages that may occur. For example, if the power was to go out and Megapack was in place, it would automatically step into play. Tesla currently has the largest market share in producing electric vehicles out there. However, many companies are looking to compete in the market share of electric vehicles, such as Ford, Volkswagen, Nio (China-owned), Toyota Motor Corp, Ferrari, and GM are industry competitors that by 2030 are looking to control the market share in electric vehicles. Statement of the Problem Once the trailblazer in the electric vehicle market, Tesla is now facing a critical challenge as the landscape evolves with the entry of formidable competitors like Ford Motors. The early success and reputation of Tesla were rooted in its pioneering status in the eclectic vehicle field, enjoying a head start with minimal comparable competition. However, the dynamics have shifted, and established automakers are investing substantial resources to challenge Tesla's dominance. The primary problem is how Tesla can sustain its competitive edge amidst an increasingly saturated supply chain for electric vehicles. The influx of competitors equipped with comparable or superior offerings in terms of quality, availability, and affordability poses a significant threat to Tesla's market position. In short, can Tesla maintain its leadership in the electric vehicle market when faced with competitors that match or surpass its capabilities? In response to this challenge, our study aims to investigate various strategic avenues for enhancing Tesla's models, marketing strategies, and overall market presence. The key focus areas for exploration include upgrades to existing models, integrating artificial intelligence through robust research and development initiatives, strategic partnerships, and the potential for franchise 4
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