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Tesla Motors : An Automobile Company

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1. Introduction Tesla Motors is an automobile company that provides electric vehicles. It was founded in 2003, in San Carlos, California. Although Tesla was chosen to be the provider of the best innovative vehicles, its sales indicated that the company could not sustain in the business since the sales appeared to be not enough to compensate the cost of the production of the vehicles. By launching the new model of its car, Roadster, in 2008 Tesla sold around 2,450 vehicles. After announcing the Model S, the company started to receive approximately 12,000 reservations by 2012. This redesigned Tesla vehicles started to be delivered and received positive feedback. In addition to this model, the company began to work on the new one, Model X, to be delivered in 2014. However, as the case indicated that, Tesla Motors has been facing some serious problems. Since the infrastructure is not ready yet to provide convenience to the potential customers, they are unwilling to buy electric cars. Having limited number of charging stations and being compatible with only a particular model is one of the biggest issues for the company. Moreover, the company’s uncertain financial status is another issue. Although the company had its first profitable quarter in 2013, from 2008 to 2012 it generated a significant amount of loss because of the high production cost of batteries. Another issue that mentioned in the case is the negative media news about Tesla Motors. In early 2012, The New York Times

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