Tesla Analysis

1467 Words Aug 22nd, 2012 6 Pages
Executive Brief for Tesla Motors Inc.

To: Elon Musk, CEO of Tesla Motors, Inc. From: Yuan Gao (kiki)
Re: Strategic Improvements for Current Situation Date: 5th Aug, 2012

Executive Summary Tesla Motors is a relatively new Silicon-Valley based company that designs and produces electronic vehicles. The company aims at producing consumer affordable price electronic automobiles with zero emissions in the next decade. Currently the CEO Musk is working on introducing the new electronic automobile Model S to the mass consumer market. However, when we look at the external environment, the Tesla Company still faces lots of challenges. The Tesla Motors’ strong competitors are the automobile companies that produce gas cars such as
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Thus said, in the next decade, there is huge potential for the Tesla to improve their sales and further expand the market shares. It is also important for the Tesla Motors to create economics of scale and decrease their total cost since excessive cost would be a cause of low net income in the long term. In addition, Tesla should consolidate the cooperation with Toyota and GE since it creates opportunities for Tesla to expand their market shares domestically and internationally.

Challenge overview
There are several factors that would post threats to Tesla’s future development. First of all is the excessive cost for manufactures. Waste of factory space directly lead to the low efficiency of production and higher the cost for the company. Lack of brand awareness is another challenge Tesla has to deal with. Since Tesla just promotes their products in a few magazines, it is difficult to improve their sales and promote the benefits of their products. Thus the result would be the slowly increase of their total sales. Furthermore, from the employees’ point of views, the company offers few benefits for the employees and the internal communication has relatively low efficiency, this factor may cause more problems for tesla in the

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