Financially, Tesla has been moderate with a market capitalization of $30 billion and about 25,000 cars sold around the world over the last three years (Niedermeyer, 2014), however compared to its competitors like Toyota and General Motors, this growth is small. Their most recent annual report shows a negative net income due to their high cost of goods and operating expenses. This is because the lithium ion battery used for these electric cars is a highly expensive product in which Tesla currently buys from an outside supplier, Panasonic. Tesla’s is considering building their own “giga plant” to start producing their own batteries and becoming their own supplier so that they can have control over the market price and their operating expenses (Putros, 2014). Tesla’s current market price is at $241 and seems to be growing strong as
Tesla Motors, Inc. was formed in 2003 in Palo Alto California with an aim to use technology to produce cars that ran on electricity. The company majors in two main brands of electric cars, the Model S sedan and the Roadster sports car. However, customers have raised concern over the battery life of the Tesla brands of cars and as such, producing a wind-powered generator to recharge the car batteries would be a welcome move for the company. The company’s target group is males aged 30 and 50 who are environmentally –conscious and would like to travel long distances without stopping thereby cutting back on the use of non-renewable sources of energy. Moreover, the company’s value proposition includes building top quality cars that would perform well and thus provide customers with high quality service. As such, the company had envisioned a move to tap the market for vehicles that use renewable energy before competition creeps in.
Inventor or innovator, many may think these two terms are synonymous, the fact is they are not. Clear in his determination that he was not simply an inventor like his rival Thomas Edison, Tesla considered himself an innovator; he was a man who discovered new concepts and revolutionized old ideas to bring about change. Throughout his life Tesla faced heavy skepticism from his peers, and even still today the scientific community questions many of his findings. In article The Tesla Files it notes, “Tesla is shunned largely because his ideas are too radical for the larger scientific community and the industry that supports them” (Howard). However, despite the skepticism Tesla faced, he spent his entire life tirelessly working to prove all of those
One of the main political factors facing Tesla in the US are the incentives offered by different states and cities to Tesla owners. They must co-ordinate with these policy makers and inform the consumer. In China, the key political factor is that “the Chinese government wants to put around 5 million electric or plug-in hybrid vehicles on its roads by 2020, but to date reports have confirmed that there are a mere 70,000 electric vehicles plying on China’s roads. In order to promote EV sales, the government has set a target that 30% of government vehicles purchased by 2016 should be EVs. To reach the target set for 2020, the Chinese government is ready to fund nearly $16 billion to build electric charging stations. To further promote EVs among Chinese car buyers, the government is looking to impose a new tax on gasoline engines and has renewed the private-buyer subsidies for electric-powered vehicles for another three years.” (GuruFocus. 2014.
Elon Musk also uses partnerships strategically to better the Tesla brand and further develop them and use this a source of revenue for the company. Tesla partnered with a number of other companies including Dailmer, which brought in 15.7 million dollars in development services revenue. Toyota was also a company that Tesla partnered with to help develop some of their vehicles one of which being to help develop an electric powertrain system for Toyota’s compact SUV the Toyota RAV4. This generated 45.1 million dollars in revenue for Tesla after a powertrain system sale to Toyota.
Tesla is an automobile company that designs and manufactures electric cars. Cars produce a lot of carbon emissions that are ejected into our natural atmosphere, leaving us vulnerable to things like pollution and greenhouse gases. In order to help positively the environment we live in, an electric car is a great step forward. It does not emit toxic gases or smoke in the environment as it runs on clean energy source. Electric cars are far more efficient than any other kind of car, and because they are the ultimate multi-fuel cars. The neat thing about electricity is that pretty much any burnable fuel can be converted to electricity efficiently. we can make electricity in so many different ways such as we can put a million solar panels on our
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
The third and final sensational destination within Fremont is the Tesla Factory. The Tesla factory, one of the world’s most advanced automobile factory, is a great place within Fremont for many reasons, of which there are three that I rate the most important. First of all, the Tesla Factory provides over 6,000 people with jobs, which allows many families to be able to survive in the expensive Fremont neighborhood. Also, the Tesla Factory manufactures over 100,000 cars a year, helping many people have more environmentally friendly cars, which will help reduce the pollution that is being
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).
The literature reviewed for this assignment comes from information resources ranging from academic journals, internal reports, financial statements, and Tesla’s Form 10-K 2016. The information ranges in date from 2015 – 2017.
Tesla is a company that barely started growing and was barely founded. “Tesla was founded in 2003 by a group of engineers who wanted to prove that people didn’t need to compromise to drive electric – that electric vehicles can be better, quicker and more fun to drive than gasoline cars. Today, Tesla builds not only all-electric vehicles but also infinitely scalable clean energy generation and storage products. Tesla believes the faster the world stops relying
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
Rarity: Tesla Motors is known to have a differentiated product over other firms in the sense that it sells electric based cars. It is the only successfully running electric sports cars in the U.S. At the beginning sales were not enough to sustain the business but tesla motors proved it self after introducing the new model, Tesla Roadster 2. There is only few car manufacturing companies trying to enter this industry which makes Tesla Motors have a competitive advantage.