Case Study : Tesla Motors Inc.

Ever since their invention, cars have been powered by gasoline. Over the years as gas prices fluctuated and supplies continue to dwindle, motorists have started looking for a more reliable and cost effective alternative. As a result car companies have begun producing a new type of car to meet the demands of consumers; the electric car. In recent years the electric car has been a source of great controversy, some seeing it as the future of personal transportation, while others see it as the inefficient and unreliable dream of environmentalists. Currently, the United States has been supporting this growth and development of electric cars. The U.S is showing this support by providing tax benefits to consumers who purchase electric vehicles, along with providing government subsidies to companies such as Tesla who are fueling the growth of these electric cars. The United States should continue to promote the use and development of electric cars because they are beneficial to consumers, the economy, and the environment. The promotion of these electric cars will also lead to the continuing developments of technology. These improvements to technology will only further benefit society in the United States.

As the EV and HEV trend strengthens, key industry players are offering models that directly compete with Tesla. Competing models include the Chevy Volt and Spark, Nissan Leaf, Toyota Prius, Ford Focus, Honda Fit, Smart Car, Volkswagen Golf, BMW i3, and Mercedes Benz B-class EV (Grant, 2015). However, Elon Musk does not view these offerings as Tesla’s competition. With only 1% of total vehicle sales going to non-hydrocarbon burning cars, Musk identifies Tesla’s true competition as the gasoline cars with production rates of about 100 million per year (Musk 2014).

Not only does this provide the company an opportunity to focus all their efforts on the brand image, but it creates a loyal and devoted customer base, in a sense. Drivers with the mindset that electric vehicles are the future, like Tesla Motors, will share that vision with Tesla and continue to support and buy from them.

Electric cars over the last several years have been a controversial topic. Companies have ran into issues regarding the batteries, pricing, and clearly competition with gas fueled vehicles. I noticed Tesla Motors a few years ago and instantly fell in love with their electric vehicles. Tesla managed to keep a very clean look with a sports car feel to their vehicles, and they are currently working on their new battery which is expected to last much longer. The price of their vehicles at the moment are priced higher than most average families can afford, but Tesla announced they are releasing a more affordable vehicle in 2017. Throughout the existence of Tesla they have made it clear they will not settle with just making vehicles that are in compliance with the laws set in place, their company will strive to make the best vehicles they can.

Tesla electric cars first appeared as small, sporty two-seaters. On March 26, 2009, the Tesla Model S was released and marketed as the top-performing all-electric luxury SUV in its class. Considering the Model S’s impressive performance capacities, they make a sound argument. David Ener, writer for Canada’s “The Globe and Mail” newspaper describes his experience of driving the Model S

The car business, including manufacturing, distribution and service, is one of the largest industries in the United States. Ford, General Motors, and Chrysler make up 49% of this market and are known as the “Big Three”. Since WWII, no U.S. company, including the Big Three, has been successful in mass-producing a vehicle in the car industry. Perhaps with Tesla’s Blue Ocean Strategy, their innovative way of designing, developing and marketing the electric vehicle, most likely will continue to be successful in this market.

There is a large span of competitors within the automobile industry. A majority of which have an upper-hand over Tesla. This advantage they have is the fact that they sell both electric and gas powered vehicles. Also, competitors also sell hybrid cars which is appealing to customers because they can have a great mile range through the gas powered part of the car and use the electric in town to save on gas. A large amount of competitors now offer some sort of eco-friendly vehicle option now.

In the early 2000’s, Martin Eberhard and Marc Tarpenning worked alongside Elon Musk in order to develop electric vehicles which also provide the expectations of a luxury car. With headquarters in Palo Alto, California, Tesla currently has over six thousand employees and tesla cars on the roads in over thirty-seven countries. The Tesla Motor Company has created a trio lineup of vehicles which include the Model S, the Model X, and the Roadster. As the product architect and CEO of Tesla Motors, Musk implemented his plans to perfection including zero emission cars with the ability to go nearly three hundred miles per charge (National Geographic, 2012). Tesla is also a leader in selling online cars, a tactic they use in order to cut out people’s interaction with salespersons. Tesla’s strategy of direct customer sales and owning its own stores and service centers is a significant departure from the standard dealership model currently dominating the U.S. vehicle marketplace. Tesla Motors is the only automaker that sells cars directly to consumers, with all other automakers using independently owned dealerships. We incorporated the same approach with our new service which provides a test driving option to potential customers. Potential customers now have the option of utilizing our database to search for existing Tesla customers in their area and reaching out to them for a one on one test drive session in order to learn more about Tesla cars. Existing customers willing to

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

The case study about TESLA was very insightful in the relentless quest for innovation and redefining the world’s transition to sustainable energy. It is inexplicable at times to understand the current policies of our administration such as the US withdrawal from Paris climate agreement. However the road has been paved for the investment in renewable energy and we now see more and more world governments, global commerce and transnational industry are embarking on a plan to

Tesla Motors Inc. has a competitive advantage in the market for many reasons of which you are responsible for. However, I believe Tesla is exposed to two major risks that have not been adequately addressed by the firm. The first is related to the capital structure, specifically the debt and equity financing agreements. If you recall the 2014 Q3 Earnings Call, you mentioned that small miscalculations of financial estimates could have enormous effects on the actual results for companies in the exponential growth phase. That being said, your strategic direction should focus on reducing the exposure of debt repayment obligations and your reliance on equity valuations that continue to rise. The level of confidence among creditors and investors cannot fluctuate too much because your highly leveraged position. CapEx in the next two years will only decrease slightly and seeing that Tesla’s debt is classified into the category of “junk bonds” – confidence may be slipping. Both debt and equity financing sources could become too costly to sustain operations.

How can Tesla Motors continue to sustain its competitive advantage in not only the electric vehicle industry but also as a leader in sustainable lifestyle?

For expand the use of non-contaminant alternative vehicles many governments, like the US federal government has instituted various incentives and regulations to urge new entrepreneurs and business entrepreneurs to invest in the green technology of the automotive market. One of the main green technology vehicle market is the introduction of electricity vehicles. Tesla motors is the electric car manufacturers in the United States. The American company is a car company, was founded in 2003, and is composed of a group of engineers in Silicon Valley engineers who is a brainchild of Martin Eberhard, Marc Tarpanning (Kebede, 2014).Depend on the strategy side, tesla motors continue to apply creative technology to develop sustainable transport. At present, its vision statement is "to innovative the most striking 21st century EV company.

There are two types of people in the world: people who love Ford vehicles, and people who hate Ford vehicles. If you knew me personally, I am not in the love Ford group but I can recognize a great organization when I see one. I met my husband about twelve years ago, I was eighteen years old and in the car with a friend of his that pulled over to say hi and we ended up talking for hours that day. He finds it funny that the one thing I remember from the first time we met was our odd conversation about his grandfather working for Ford. I may have made a sarcastic comment about the Ford in his driveway and his debate was entirely about how his Grandfather has worked for Ford for many years and how amazing they treat him and his family. That 's why a place earns the title of best place to work; happy employees that feel they are supported and treated fairly is so hard to find now.

General Motors Company which is commonly known as GM, is an American multinational corporation headquartered in Detroit, Michigan that designs, manufactures, markets and distributes vehicles and vehicle parts and sells financial services. General Motors was founded by William “Billy” Durant on September 16, 1908. Durant had become a leading manufacturer of horse-drawn vehicles in Flint, MI initially. At its inception GM held only the Buick Motor Company, but in a matter of years would acquire more than 20 companies including Oldsmobile, Cadillac, and Oakland, today known as Pontiac. General Motors Company is one of the biggest companies in the world of automotive industries. The Company delivers automotive vehicles around 37 countries and has joint ventures such as Shanghai GM, GM India, and GM Egypt.