Tesla Motor, Inc. Essay

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I. Company Overview Tesla Motor, Inc. is an American automaker focused on selling electrically powered vehicles without compromising quality of transportation. The company began selling cars in 2008 with the Roadster and became publicly traded in 2010. Today, there are many players within the automobile industry. The company was, “founded in 2003 by a group of engineers in Silicon Valley who wanted to prove that electric cars could be better than gasoline-powered cars. With instant torque, incredible power, and zero emissions” (Tesla). They are a company that offers 100 percent electric cars, lithium batteries and charging stations. Tesla 's mission statement is, “to accelerate the world’s transition to sustainable transport” (Tesla). Tesla believes that, “ it is not just an automaker, but also a technology and design company with a focus on energy innovation.” II. Strategic Issue WE NEED TO THINK OF OUR OWN IDEAS Tesla is currently the only automotive manufacturer focused solely on electric cars. To develop their concepts they have been spending far too much on research and development. In 2014 Tesla spent $465 million dollars on expenses related to research and development. A total of 44% of operating expenses and 15% of total revenues are attributable to research and development (Figure #). They issue they are facing is investing too much into research and development which is hurting their overall bottom line. The company may be innovated but they are not making a

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