Supply Chain Management : Tesla

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).

Tesla Motors is a car company that designs, manufactures and sells electric vehicles. This public company was founded in 2003 by Ian Wright, JB Straubel, Marc Tarpenning, Martin Eberhard and most notably Elon Musk. Its headquarters is located in Palo Alto, California, with its main production plant in Fremont, California. The company was named after Nikola Tesla, a renowned electrical engineer and physicist. Its goal is to increase the number of EV’s (Electric Vehicles) available to the market to help make it more mainstream. Currently, Tesla motors have produced two models, the Tesla Roadster and the Model S, and has unveiled a third, the Model X. In the Future,

“Tesla Motors, Inc. is an American automotive and energy storage company that designs, manufactures, and sells electric cars, electric vehicle powertrain components, and battery products.” Founded in 2003, the car company has taken the industry by storm by providing sleek, innovative and futuristic automobiles. In addition, the car manufacturer has revolutionized the automotive, renewable energy and manufacturing industry. Although the concept of the Telsa automobile was first introduced in the late 1800’s, the new designs are newer, more modern. The Telsa ha shattered the competition, the concept and utilization of electric cars, introduced efficient battery options, and changed the way electric cars can be charged for usage. In 2015, the company reported approximately $8.09 Billion in total assets and as of March 2016, the company has sold over 125,000 vehicles worldwide. I’d say the company is headed for big things.

Tesla Motors has confronted the market in an entirely unique way for the auto making business. Tesla plans to entirely bypass the dealer by providing vehicles directly to the consumer via the

The purpose of this journal is to compare the old technologies (combustion engines) to the new (electric engines) and have proper laws/regulations. The article explains in great depth how Tesla sells privately to clients. This article is challenging to comprehend, it is written for an educated person. It is relevant with marketing because it explains who the crowd Tesla sells their cars to. The downside of the article is the complex vocabulary.

content,” (Tesla Motors). According to the company website that’s more than most American vehicles as the Ford F-150 and Chevy Silverado pickup trucks. This shows that investors should look at Tesla Motors as more than a traditional auto company.

Tesla Motors are noted to have personnel with a unique expertise in their field of work. These individuals help in carrying out activities that lead to the great performance of the company. The various innovations applied by these people is what led to the better performance of the company. Elon Musk along with taking over the leadership of the company brought about his experience in the firm and this was to influence the future performance of the company. Elon masterminded the designing of the Roadster and also included the marketing of the ordinary vehicle in the goals of the company (Hunger, 2010). This was something which had not been done by those who were there before him and thus his

Tesla Motors was established in 2003 by entrepreneurs Martin Eberhard and Marc Tarpenning. Today, Tesla Motors provides power train components for car producers, including Daimler and Toyota, designs and manufactures Model S, the first world ‘s premium zero-emission sedan that became the third best-selling all-electric car in the U.S. The company is worth more than $25 billion and has one of the highest growth rate in U.S. This success of the company is contributed to Elon Musk, the CEO and Product Architect of Tesla (Tesla, 2014), who has a very strong vision of company’s future.

Tesla has become the first automaker to implement a direct sales business model, they don’t rely on middlemen to get their product to the masses, instead they go directly from the factory to the future owners via online sales. The people who are already costumers are satisfied and this makes their user base grow via word of mouth.

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

New Competition: Tesla Motors is not just competing with the regular car and automobile manufacture but needs to compete against a technology which has been in use for over hundred years i.e. the combustion engines. Further people are often resistant to change and it is a challenging task for the company to convince their potential customers on the use of electric cars over combustion cars which may take a lot of time and directly affect the sales and revenue of the company (Woodyard, Chris 2008).

Tesla’s success can be traced to superb management, and the futuristic vision of the management team. Even though Tesla is a fairly new company, the success of its products and the management of the firm have help it to become a profitable company in a relatively short period of time. In 2014, the company generated total revenues of $3,198,356,000, with a gross profit of $881,671,000 (Tesla Motors p. 46). The company main source of revenue came from selling electric vehicles, at the same time, the company experienced a high demand of model S vehicles, driven by the growth of Model S vehicle sales worldwide. The high sales were reflected on the firm’s gross margin for 2014, which is estimated at 27.6%, 5.9 points higher than previous year when margins were 22.7% (Tesla Motors p.46)

In order to provide a lower-end vehicle, a company must be able to benefit from economies of scale in order to reduce their costs. Without pre-existing systems and factories in place, Tesla would be unable to compete at the lower price point due to its high costs. Therefore, their strategy to enter the market with a higher end, “flashier” vehicle allows them to set up their operations for future production while actually standing a chance against their competitors. The higher profit margin per unit sold allows the company to break even faster on their fixed setup costs. In addition, Tesla was able to benefit from the industry crisis to purchase plants at a fraction of the normal cost. Another key barrier Tesla had to overcome is the consumer’s perception of eco-friendly cars and how to re-define the product’s position in the consumer’s mind. They did so through a marketing campaign focusing on the speed, comfort, and handling before talking low emissions. They also stressed the potential cost savings from gas and reduced service and repairs to their consumers. Presenting their brand this way helped expand their potential consumer market as the vehicle was meant to appeal to the general buyer, not those specifically looking for environmentally friendly vehicles. Tesla also had to compete within the

With any new product introduction there will be risks. The greatest risk is the possibility that the new product will fail. Fortunately Tesla will be supplying a product that consumers desire and they have built a company based on proven and well calculated strategies. Although it is unlikely that Tesla’s new product would fail completely, there are other risks that could be present during the new product launch. For instance, given there will be a new product, that is going to be produced on a mass scale for a large consumer market, there will be an increased demand on Tesla’s supply chain. With an increased demand on Tesla’s supply chain there will be additional administrative, financial and personnel risks. All of these risks will need to be addressed and planned for appropriately in order to be prepared.

Tesla Motors, Inc. is an American company that designs, manufactures and sells electric cars and electric vehicle power train components. Tesla Motors is a public company that trades on the NASDAQ stock exchange under the symbol TSLA. Tesla was founded in 2003 by Elon Musk, Martin Eberhard, Marc Tarpenning, JB Straubel, and Ian Wright. The headquarters of Tesla Motor located in Palo Alto, California, USA. Tesla has served in many countries, such as United States, Canada, Japan, Australia, New Zealand.