Tesla Business evaluation

4327 WordsMay 22, 201418 Pages
Introduction Brief history of the company Tesla Motors, Inc. is an American company that was founded in 2003. The driving idea behind the venture was proving electric vehicles could be a viable substitute of the gasoline powered cars without sacrificing comfort, performance or luxury. Apart from the core function of designing and producing electric cars, Tesla also provides advance electric vehicle powertrain components and know-how to other automakers, which are looking into venturing in the EV (electric vehicles) market, such as Daimler, Toyota and others. The company’s headquarters are located in Palo Alto, California. Due to their specific business and marketing model, namely, no middle-man and little-to-no mass scale…show more content…
Simply put, they couldn 't start with an inexpensive electric car - it would have been too expensive to build up. Instead they began with creating a “legend” of a brand - an expensive sports car - the Roadster, generating interest and a sound foundation of renown and fans, upon which they could build-up later. The financial idea behind this decision was that the profits from the Roadster would pay for a less expensive car - the Model S, and profits from the Model S would pay for an even cheaper car. The Roadster sold quickly sold 2500 units, after which production was stopped to launch the next model. About 2,650 Model S cars were sold in the U.S. in 2012, and 4,900 units during the first quarter of 2013. This allowed Model S to become the top selling plug-in EV in North America during the first quarter of 2013, ahead of the Chevrolet Volt and the Nissan Leaf. Model S won the 2013 "Motor Trend Car of the Year", "World Green Car", Automobile Magazine 's 2013 "Car of the Year" and Time Magazine Best 25 Inventions of the Year 2012 award. Capabilities 1. Developed ability to apply commoditized small cylindrical lithium cells, which are generally used in consumer electronics, to cars through good proprietary power management. 2. Empowering and self-driven employee that promotes company’s
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