Advantage And Weaknesses Of Tesla Motors

Two parameters define Tesla’s industry competitive environment: what Tesla is today and what Tesla hopes to become in the near future. Today Tesla delivers an EV in the high-end luxury market ($70k+), but plans to deliver an affordable ($35K) small sized sedan in the next few years (Kaufman, 2015). The differences between Tesla’s current and future plans affect the threats and opportunities for potential entrants, industry competitors, and buyers in the near term and long term.

Tesla Motors remains in its primitive stages. Being a relatively young and emergent company, Tesla

In 2008, Tesla Motors launched the Tesla Roadster (Tesla Motors, Inc, n.d.-a). The Roadster was able to travel 245 miles per charge and accelerate from 0 to 60 in 3.7 seconds (Tesla Motors, Inc, n.d.-a). Tesla Motors would sell 2,400 Roadsters in over 30 countries (Tesla Motors, Inc, n.d.-a). In 2012, Tesla Motors discontinued their Roadster design and launched their Model S electric sedan. In 2013, the Model S won Motor Trend’s Car of the Year award and achieved a 5-star safety rating from the U.S. National Highway Traffic Safety Administration (Tesla Motors, Inc, n.d.-a). In 2014, an all-wheel drive configuration of the Model S that further increased perforce in acceleration achieving a 0 to 60 in 3.2 seconds (Tesla Motors, Inc, n.d.-a). In 2015, Tesla Motors began selling a full-size all-electric crossover SUV, the Model X. The Model X has sold over 2,600 units since its launch (Tesla Motors, Inc,

Opportunity: The electric automotive industry and Tesla should decrease both the costs of its batteries and in renewable energy to attract more purchasing customers.

The car market has been ran by companies such as Volkswagen, Toyota, Ford, BMW, and many other companies, but one of the newer, up and coming companies in this market is Tesla Motors Inc. Tesla has been around for a little over 10 years, and have come quite a long way from where they began. Tesla now sells luxury electric vehicles different than any other electric vehicles today, and they have big plans for expansion in the future. Tesla may not be one of the biggest car companies today, but one day they will be considered alongside companies such as Toyota and Ford.

Tesla Motors is only selling electric cars, and people are still suspicious of electric cars.

This engineering challenge seems to have affected the production of the car. Tesla revised its 2015 delivery estimates of the Model X to 50,000 to 55,000 from an initial estimate of 55,000. At the end of 2015, the automotive and energy storage company met its revised estimates but the numbers were still far from the initial estimate of 55,000. It delivered 50,557 Model X cars. The company also revised its monthly manufacturing estimates for 2016 to between 1600 and 1800 from its initial estimate of 2000 cars.

However, as the case indicated that, Tesla Motors has been facing some serious problems. Since the infrastructure is not ready yet to provide convenience to the potential customers, they are unwilling to buy electric cars. Having limited number of charging stations and being compatible with only a particular model is one of the biggest issues for the company.

We design, develop, manufacture and sell high-performance fully electric vehicles and advanced electric vehicle powertrain components. We have established our own network of sales and service centers and Supercharger stations globally thus creating a unique business model in the automobile industry. We

Tesla Motors Incorporated, an American company that designs, produces, and sells electric vehicles and their electric components, has become one of the fastest growing car companies in recent history. The company’s main goal was to start creating electric vehicles that were accessible and affordable to the public. Founded in 2003 and taking off successfully by 2009, Tesla Motors started selling the first mass-produced vehicle to use lithium-ion battery cells and hold a range of greater than 200 miles on just one charge. Along with building their own electric vehicle models, Tesla also builds electric powertrain components for vehicles from other automakers including cars such as the Toyota RAV4 electric vehicle. Tesla has begun to maximize

Tesla EV Focus on potential cost saving on gas, reduce cost on service and repair.

Between 2003 and 2013 Tesla was arguably one of the most controversial companies. An innovative company with a breakdown idea, had no financial success in its first decade. With the addition of Elon Musk in 2008, Tesla had a fresh new face at the stern of its company and was poised to make big strides into the future. Those strides finally broke through in 2013 with its first truly positive financial year. However, this year was not without trouble as Tesla found itself in the news for the wrong reasons. On several occasions their Model S design had issues with car fires. Though this did not cause a complete catastrophe, it cased questions to the true safety of their vehicles. Tesla would fight back by arguing the safety of their vehicles saved the drivers lives in addition to unforeseen circumstances that caused the fires. Because of these incidents, investors did get spooked and expectation for the remainder of 2013 and projected 2014 were lowered, yet once again Tesla powered through and had their best year of existence. With these above factors, Tesla is at a true crossroads: do they continue the uphill climb that 2013 presented, or do they falter and fall pretty to its competitors.

The purpose of this memo is to compare the financial performance of Tesla Motors Inc. to the Bayerische Motoren Werke AG. BMW AG was selected because they are in direct competition with each other in the fully electric power motor vehicles. BMW has been chosen because they currently offer the most fully vehicles on the market compared to any other automotive manufacturer. BMW is also one of the only manufacturers that has invested resources into developing its electronic drive system (I-Drive) instead of buying an existing model of electronic drive system like other car manufacturers such as Mercedes(TechCrunch). After completing a financial analysis of the two companies it can be concluded that Tesla Motors Inc. is in a weaker financial position compared to BMW AG.

Product acceptance: Tesla may have trouble with product acceptance. Electronic vehicle that emits no pollutants is attractive to consumers, but science may indicate that the electronic battery charging produces emissions that are harmful in the production of electricity.

Tesla is not the innovator of electric car. The technology has already existed since 1959, but due to the factor related to the timing, the company had to cease its operation. The factors involve timing such as, low oil price, supplies of oil, global warming, people awareness regarding eco friendly or green environment.